, Columnist
India's Central Bank Is Stuck in a Halfway House
The RBI has the trappings of a modern institution, but remains beset by challenges to its independence.
Empty chairs.
Photographer: INDRANIL MUKHERJEE/AFPThis article is for subscribers only.
India's worst economic slump is no time for the government to sow doubts about the credibility of its institutions.
On Monday, the Reserve Bank of India postponed its three-day, rate-setting meeting without giving a reason. It was probably canceled because the panel didn’t have enough people to convene; the six-person committee requires four officials to proceed. The terms of three members have expired, and requests that the government extend their tenure were met with the formation of a group to select new ones instead. (By law, they can’t be appointed to second terms.)