The failure of the Reserve Bank to control inflation is due to the government setting aside its work and mixing tunes with the government. The institutional damage caused by this is detrimental to the common man in the future.When the rate of inflation is low, the task of central banks is easier, as it is possible to keep the country's borrowers satisfied by providing large loans at low interest rates. The real impetus for these banks is in times of inflation, as they are forced to make unpleasant decisions. Let's see how the Reserve Bank is failing this exam till today.Let's start with an analysis of the statistics at hand. The current rise in food and fuel prices is only a result of the changing global economic situation, especially the war waged by Russia against Ukraine. But long before the war began, inflation in India had begun. The Reserve Bank of India (RBI) has set a target of keeping monthly inflation at around 4%. Since then, the rate has been going up to four per cent. This means that for almost three years, we have failed to control inflation. Despite the RBI's target of not allowing monthly inflation to go beyond 6 per cent, the rate has gone up by six per cent for 18 months (about 56 per cent of the time) out of the 32 months of the period.Despite all this, the RBI has not commented for a long time. The graph of the US Federal Reserve and the European Central Bank has been declining for almost a year, but the graph of the Reserve Bank has been declining for a longer period of time. Even now, the bank seems to be in the mood to adapt to the situation, not to take a hard line against inflation. To enable the RBI to control inflation, the government has enacted legislation to control inflation. But why did it happen even after that? The simple answer is that the RBI made a mistake. She failed to understand the situation properly. Although indirect inflation has consistently hovered around six per cent, it has been attributed to temporary factors from time to time.This underscores a fundamental question, which is why these mistakes have never been corrected or challenged. In fact, the measures taken to control inflation included a number of provisions to avoid errors in economic decisions. It is the responsibility of the Reserve Bank to ensure that inflation remains around four per cent. To review her predictions and the role she has played in policy It is the responsibility of the Credit Policy Committee to approve it. If the inflation rate stays above six per cent for three consecutive quarters, the RBI will have to give a public explanation. In the midst of all this, all three of these institutional security shields faded. Let's see how First of all, the rights of the Reserve Bank were ignored. Her main responsibility was to control inflation and to drive economic growth while it was under control. But the RBI took on three other responsibilities.

1. Reserve Bank of India?
The failure of the Reserve Bank to control inflation is due to the government setting
aside its work and mixing tunes with the government. The institutional damage caused
by this is detrimental to the common man in the future.
Arvind Subramanian, Josh Felman
Reserve Bank of India
When the rate of inflation is low, the task of central banks is easier, as it is possible to
keep the country's borrowers satisfied by providing large loans at low interest rates. The
real impetus for these banks is in times of inflation, as they are forced to make
unpleasant decisions. Let's see how the Reserve Bank is failing this exam till today.
Let's start with an analysis of the statistics at hand. The current rise in food and fuel
prices is only a result of the changing global economic situation, especially the war

2. waged by Russia against Ukraine. But long before the war began, inflation in India had
begun. The Reserve Bank of India (RBI) has set a target of keeping monthly inflation at
around 4%. Since then, the rate has been going up to four per cent. This means that for
almost three years, we have failed to control inflation. Despite the RBI's target of not
allowing monthly inflation to go beyond 6 per cent, the rate has gone up by six per cent
for 18 months (about 56 per cent of the time) out of the 32 months of the period.
Despite all this, the RBI has not commented for a long time. The graph of the US Federal
Reserve and the European Central Bank has been declining for almost a year, but the
graph of the Reserve Bank has been declining for a longer period of time. Even now, the
bank seems to be in the mood to adapt to the situation, not to take a hard line against
inflation.
To enable the RBI to control inflation, the government has enacted legislation to control
inflation. But why did it happen even after that? The simple answer is that the RBI made
a mistake. She failed to understand the situation properly. Although indirect inflation has
consistently hovered around six per cent, it has been attributed to temporary factors
from time to time.
This underscores a fundamental question, which is why these mistakes have never been
corrected or challenged. In fact, the measures taken to control inflation included a
number of provisions to avoid errors in economic decisions. It is the responsibility of the
Reserve Bank to ensure that inflation remains around four per cent. To review her
predictions and the role she has played in policy It is the responsibility of the Credit
Policy Committee to approve it. If the inflation rate stays above six per cent for three
consecutive quarters, the RBI will have to give a public explanation. In the midst of all
this, all three of these institutional security shields faded. Let's see how
First of all, the rights of the Reserve Bank were ignored. Her main responsibility was to
control inflation and to drive economic growth while it was under control. But the RBI
took on three other responsibilities. First, an attempt was made to recover the
depreciating rupee by selling a large portion of the foreign exchange reserves. Second,

3. lower interest rates on government bonds to cover the fiscal deficit Was kept and a large
amount of government bonds were purchased. Third, the RBI tried to get the government
to pay a large dividend.
The third point needs further clarification. Most analysts believe that the RBI's dividend
depends on factors beyond its control. But this is not the whole truth. For example, when
the Reserve Bank sells foreign currency, it may declare a profit based on the valuation
gains received. For example, if the RBI buys ७० 10 billion at Rs. Profits can be declared.
Former Chief Executive Officer of Mintra V. According to Anant Narayan, if it had not
made such a profit, the RBI would not have been able to pay dividends in the previous
year.
No wonder the RBI has neglected its main objective of controlling inflation in pursuit of
different goals (inflation, growth, interest rates, exchange rates and dividends). Senior
journalist T. N. As Nyanan says, inflation has risen, and the RBI has begun to act as if its
goal is to keep it at six per cent. Such as Some of the roofs were converted into floors.
These floors may also be shaken in the future.
While the RBI was failing, the credit policy committee was also failing to discharge its
responsibilities. The committee consists of three external members. They are expected
to conduct independent technical analysis and advise. However, reports from meetings
of the committee show that these members did not anticipate inflation or challenge
economic policies. He also did not object to the credit policy. Of this committee in recent
times Rajeshwari Sengupta, a researcher at the Indira Gandhi Institute of Development
and Research, observes that the trend is towards unanimous decision making.
The RBI was required to issue a circular stating what measures are being taken to bring
inflation back to around 4 per cent in 2020, when inflation has consistently crossed the 6
per cent mark. However, this was avoided due to statistical problems. Despite all this, no
one, not even financial analysts, has complained or asked questions.

4. Why is it that the security of financial decisions has become so pervasive? The reason is
clear: the RBI and the credit policy committee felt the need to assist the government. For
this, it is necessary to control the rates of government securities, pay large dividends and
maintain confidence in government policies by preventing the devaluation of the rupee.
But they did so under pressure from the government, which would never understand that
they were anticipating the government's objectives.
Whatever the reasons, this failure must be taken into account. Inflation has to be paid in
different ways, but the worst affected are the economically weaker sections. Workers in
the unorganized sector do not get regular pay rise like the workers in the organized
sector. It is also difficult to get a voluntary pay rise from the small manufacturers they
work for. Denied denominations, goods and services taxes and shocks like Covid
Smaller manufacturers are no longer in a position to give wages to their workers even if
they want to. As a result, workers' wages are likely to fall and their purchasing power is
likely to decline.
Inflation affects the politics of the vote, so political leaders have always feared inflation.
A serious study is needed on whether and how such an effect really occurs, (including
the question of whether the resulting social security network could be created). Of
course, the economic consequences are inevitable.
This failure must be acknowledged because it raises questions about organizational
integrity and efficiency. Institutional independence does not necessarily mean that
institutions should co-operate with the government in power, but it is also a subtle
feature of independence that perpetuates a kind of struggle. In the past, there have been
instances of escalating tensions between the RBI and the government.
But now this pendulum seems to be leaning to one side, threatening freedom and
integrity. Important and reputable institutions like the Reserve Bank will not function as
an expanded form of government. Even more serious is the lack of security. Controlling

5. inflation is very important for achieving economic stability and thereby laying the
foundation for inclusive growth. Is. While many important institutions in the country are
weakening, there are fears that important institutions like the Reserve Bank may be
added to it. It can have serious side effects. Most of them are already happening.