~snip
Hope you are aware of the Monetary Policy Committee and
it is control by the government and now a days nothing is transparent like they used to be in the past and RBI does not take control of everything now and hence there is no conflict of interest.
No one is denying that. MPC is indeed controlled and constituted by government. But you know when MPC is created? It is created when government requires expert advice on some complicated matters. Hence, what government does, it creates a committee having members from different fields like one from government itself, one from RBI, one from finance ministry, others from various other financial departments. MPC then discuss the matter in series of meetings and comes to final proposal which is then presented to government. Government then have complete autonomy to either accept the proposal or reject it.
But you know there is one difference between the decision taken by committee and decision taken by government. Committee only takes into consideration the technical purview and decision is explicitly taken on that basis. But when it comes to the decision of government, government takes into consideration social reaction, public retaliation along with technical aspects. So in short we can say, government will never hurry and implement committee's draft.
When the current government came into power you know how many governors were changed because they do not listen to the central government, first it was Raghuram Rajan then came Urjit Patel and now we have Shaktikant Das, any idea why this much change in a short period of time and you think that everything is normal and regarding the bitcoin ban, the RBI does not have the power to ban anything and what they control is the banking sector and not to shut down businesses.
I don't want to go in details of politics within RBI or its tension with government, there is much more into case then what you and me know. However, I would like to reply to the text I bolden in the quote text above. So first thing, RBI didn't ban anything. It just issued guideline to commercial banks to not provide banking services to businesses involved into crypto business. This guideline indeed comes into the definition of '
controlling the banking sector'. Shutting down of businesses like Zebpay is just the consequences of this decision. If Zebpay wants it could have stayed and evolved itself into P2P, something like WazirX or Giottus. It made exponential profits in FY 2017-18 and could have worked in losses for a year until its P2P network starting gaining momentum. But what Zebpay did, it left India, moved to Malta and forgets Indian market completely. When Zebpay has no sentiments for Indian market and adoption of Bitcoin in India then why we are fighting for the closure of such businesses? Did you see any case filed by Zebpay against RBI decision? No, it was IAMAI which took initiative.
