Governor of The Reserve Bank of India has a responsibility to speak up. The Reserve Bank of India serves the nations not a government. As a public servant, he owes his loyalty to the country and the Constitution – and not just to a government in transit, Dr D. Subbarao, the Governor of RBI, said at a public event in Mumbai and he was quoting the late I.G. Patel, a former RBI governor.
At the same time, central bankers have to be sensitive to the democratic milieu in which they function. Governors must choose their issues carefully and help steer debate in the right direction without annoying the government, Dr D. Subbarao added.