IMF says monitoring situation in India; bats for RBI's independence
Washington, Nov 2 : The IMF has said it was monitoring the reported rift between the RBI and the Centre in India, and expressed its opposition to any move that compromises the independence of central banks anywhere in the world.
There were reports of mounting tension between the Ministry of Finance and the Reserve Bank of India (RBI) over the autonomy of monetary policy makers after Finance Minister Arun Jaitley on Tuesday criticised the central bank for failing to check indiscriminate lending during 2008 and 2014 that has led to the present bad loan or Non-Performing Asset (NPA) crisis in the banking industry.
"We're monitoring the development on that issue and will continue to do so," International Monetary Fund (IMF) Director of Communications Gerry Rice told reporters on Thursday when asked about the row.
"Just stepping back, as a general principal, and we've said this before. I've said this before standing here that we support clear lines of responsibility and accountability... And, international best practice is that there should be no government or industry interference that compromises the independence of the central bank and financial supervisor," Rice said.
This is true across the range of countries that the independence of the central bank and the financial supervisor is of utmost importance, he asserted.
"We regard it as such and we have to make that statement in the context of a number of countries. So, I think that's probably the best response I can give you," Rice said, responding to a question on the increasing efforts globally to criticise central banks, including the one by the US President Donald Trump in recent weeks.
The row was sparked off last Friday when RBI Deputy Governor Viral Acharya in a hard-hitting speech warned that undermining central bank's independence could be "potentially catastrophic", possible indication of the RBI being pushed to relax its policies ahead of general elections next year.
Sources privy to development said the government had sent at least three letters on different issues under Section 7 of the RBI Act that gives it powers to issue any direction to the central bank governor on matters of public interest.
The standoff was in relation to RBI's handling of weak public sector banks, tight liquidity in the market and ways of resolving bad loans in the power sector. Some reports claimed that RBI Governor Urjit Patel was considering stepping down if the government were to issue an unprecedented direction.
Without acknowledging that the notices have been sent to the RBI, the Finance Ministry in a statement said that the "autonomy for the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement. Governments in India have nurtured and respected this".
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Telangana survey flags 89,000 child labourers, highlights caste disparities in employment
Hyderabad: A caste-based survey conducted by the Telangana government for 2024–25 has identified around 89,000 children engaged in labour across the state, with a large share belonging to Scheduled Caste (SC) and Scheduled Tribe (ST) communities.
The findings are part of the Socio, Economic, Educational, Employment, Political and Caste (SEEEPC) Survey, which covered about 3.5 crore people across 242 caste groups. According to the report, nearly one per cent of individuals below 18 years are involved in daily wage work. While the percentage appears small, officials noted that the absolute number reflects a serious concern.
The survey found that 11 per cent of identified child labourers belong to the ST Lambadi community, while 14 per cent are from the SC Madiga community. The highest incidence was reported among the ST Kolam group, where 7.2 per cent of minors are engaged in daily wage labour.
The data also revealed wider socio-economic disparities. Nearly half of the Scheduled Caste population is dependent on daily wage work, while only around 5 per cent are employed in the private sector, compared to about 30 per cent among General Castes.
State Welfare Minister Ponnam Prabhakar said the findings show that SC and ST communities remain three times more backward than General Castes, while Backward Classes are about 2.7 times more disadvantaged.
The report further noted that, on average, 31.3 per cent of people in the 25–65 age group depend on daily wage work. Among communities, the BC-A Odde group recorded the highest share at 55 per cent. In contrast, only 2.6 per cent of OC Brahmins rely on such work.
Several SC and ST communities, including Kolam, Beda, Madiga, Koya, Gond, Yerukulas and Mala Sale, were found to have among the highest proportions of daily wage earners. On the other hand, most General Caste communities and some Backward Class groups such as Goldsmiths and BC-C Christians showed lower dependence on daily wage employment.
The survey also pointed to inequalities in access to formal employment. Communities such as OC Rajus, OC Brahmins and Kapus were found to have a higher presence in private sector jobs, with up to 27 per cent of their population employed in such roles.
