But up till now, RBI hadn’t listened. It had behaved pretty much as it did in 1995, when a similar monetarism-on-Viagra had derailed the economy. Why it did it budge on Tuesday? Because the word from the street had reached Mint Street. Ordinary borrowers were being penalised for a crime no one seems to have committed. Noise had filtered into the ivory tower. RBI had to take note of vox populi. Even more than foreign policy, monetary policy enjoys the principle of being the preserve of a select few. But in democracies, especially in economically aspirational democracies, when a select few call it wrong and their decision impacts economic futures of many, corrections are must. To see that happen is not politicisation of monetary policy. It’s democratisation of a crucial debate.

If RBI sees its Tuesday decision in this light it will do itself a favour. It can then anticipate another pressure from below and reform pro-actively, instead of appearing to have been forced into making changes. India’s banking is subject to outrageous restrictions. Banks can’t open ATMs without permission, forget easy rules for expansion, merger and more private banks. Bank can’t pay their executives as they want. Top bankers can’t decide which company boards they want to sit in. This is absurd. And this will change because the economy will demand that it does. Why doesn’t RBI change before that?