This is what RBI has to say on its governors: “Few personalities are so close to and yet so distant from India’s populace as the governor of the Reserve Bank and few evocative of his awe and mystique: close, because virtually every individual, be he ever so poor or so rich, carries on his person the promise and signature of the governor. Awe, they command as the custodian of the country’s reserves and defenders of the external value of the currency. And mystique, they possess as purveyors of money, the commodity all desire but so few understand.”

Everyone may not understand money. But everyone understands notions of transparency and independence. Perhaps because of the distance and mystique, ranking RBI governors isn’t as common as ranking FMs. However, if you judge by RBI’s own website on its governors, reforms are flagged more under C. Rangarajan (1992-97) and Bimal Jalan (1997-2003) than under Y.V. Reddy (2003-08). Reddy’s listings are more personal accomplishments. Beyond rates (which are manifestations), reforms (unlike crisis management) are the true test of any RBI governor’s success and this not only means banking reforms (which have continuously occurred in incremental fashion), but also central banking reforms. RBI needs to re-invent itself and this is more difficult than managing crises, which is what P.C. Bhattacharya (1962-67) and S. Venkitaramanan (1990-92) had to undertake in different contexts. That re-invention could have happened under Y.V. Reddy, but didn’t, despite the India Shining (GDP growth, forex reserves, low inflation earlier and low deficits) story.

... contd.