I would like to de-mystify the office of governor: RBI chief

“I want them (RBI staff) to understand that they will serve me better by disagreeing with me and telling me what to do rather than trying to outguess me. I want them to understand that the governors do not know everything and that they should feel free and comfortable about speaking up,” said Subbarao who was the finance secretary before becoming the RBI governor last year.

Subbarao also wants to bring in more transparency in the Reserve Bank of India,which is often criticised for its opaque and non-transparent style of functioning. “We have to make the RBI more transparent. We need to improve communication at both technical and non technical levels,” he said to a question on the three things that he could achieve in his first three years. The text of the interview was released by the RBI on Friday.

“I would like the RBI to acquire greater proficiency in managing monetary policy in a globalised context. India is going to become more and more integrated. And we are going to be impacted by what’s happening around the world,” Subbarao said.

Said the RBI governor,“I’ve also been fortunate to work for a long period in the area of public finance. The Reserve Bank is different from what I did before as a civil servant in terms of work content and accountability mechanisms.”

On the economy,Subbarao said the single most important objective is returning the economy to a high growth path. “The challenge for the Reserve Bank will be to create the stage for 9 per cent growth in an environment of price and financial stability,” he said.

On the tough challenges ahead,he said,“moving forward we need to understand that monetary policy is going to be more difficult because of the increasing forces of globalisation. We need to acquire greater proficiency in that. The central bank has performed the role of being an effective counterpoint to government which often has to concentrate on short-term objectives. On its part,the Reserve Bank has been able to take a medium-term view and what is prudent and optimal comes out of this synthesis. “We should continue to do that,” he said.