Topic Of The Day:-“The Rbi Concedes A Vital Principle”
Its Openness To The Board Discussing All Policy Decisions May Well Be A Paradigm Shift
The angel was in the detail of the terse press note that the Reserve Bank of India (RBI) issued after the meeting of its board of directors on November 19. Every one of the four decisions taken, including three decisions related to regulation, was ascribed to the board. The note also mentions that the constitution of a committee to examine the economic capital framework of the RBI, which was one of the decisions taken, will be jointly determined by the RBI and the Government of India.
These announcements constitute a significant departure from what has appeared to be the position of the RBI thus far: policy decisions, especially those relating to regulation, are the exclusive province of RBI management. Any departure from this position amounts to an infringement of the RBI’s autonomy.
The government and some of the current nominee directors on the RBI board have contended that all policy decisions must be deliberated by the board. The outcomes of the November 19 meeting suggest that the RBI has conceded this vital principle. This augurs well for the relationship between the government and the RBI management hereafter. Indeed, it may well constitute a paradigm shift in the functioning of the RBI.
MEANINGS AND WORDS
1) terse
Meaning : sparing in the use of words; abrupt(adj).
Synonyms : brief
Antonyms : verbose
Example : “a terse statement”
2) ascribed
Meaning : regard something as being due to (a cause).
Synonyms : assigned
Antonyms : relieved
Example : “he ascribed Jane’s short temper to her upset stomach”
3) infringement
Meaning : the action of breaking the terms of a law, agreement, etc.; violation(n).
Synonyms : violation
Antonyms : infraction
Example : “copyright infringement”
4) contended
Meaning : struggle to surmount (a difficulty).
Synonyms : argued
Antonyms : agreed
Example : “she had to contend with his uncertain temper”
5) conceded
Meaning : admit or agree that something is true after first denying or resisting it.
Synonyms : approved
Antonyms : confronted
Example : “I had to concede that I’d overreacted”
6) augurs
Meaning : of an event or circumstance) portend a good or bad outcome(v).
Synonyms : foretokens
Example : “the end of the cold war seemed to augur well”
7) paradigm
Meaning : a typical example or pattern of something; a pattern or model.(n)
Synonyms : model
Example : “society’s paradigm of the ‘ideal woman’”