RBI employees back Viral Acharya in govt tussle

Amid a face-off with the central government over policy issues, the Reserve Bank of India (RBI) is uniting internally to fight for the preservation of its autonomy.

After RBI deputy governor Viral Acharya fired the first salvo, the central bank's employees union on Monday launched an attack against the central government. The power tussle has also taken a political colour with the Congress siding with RBI.

In a press statement, All India Reserve Bank's Employees Association (AIRBEA) said that "undermining the country's central bank is a recipe for disaster and the government must desist."

Backing the deputy governor, AIRBEA said that "Acharya had spoken more in disgust and despondency due to continuous nibbling by the government and the ministry of finance".

The growing difference between the North Block and the banking regulator came under public glare when for the first time, the RBI published a dissent note on its website, expressing its disagreement with the government in setting up a separate payments regulator.