Major banking transactions came to standstill today as over 17,000 employees of Reserve Bank of India went on one day strike protesting against reform measures of the central government and seeking better retirement benefits, affecting cheque clearances, payments and forex transactions.
Government’s taking away the public debt management from the central bank has not gone down well with the protesting employees as it is being considered as an act to curtail monetary policy of the central bank by the government.
“The government by various mechanisms is taking away functions of RBI. They have proposed to form Public Debt Management Agency (PDMA). Monetary policy is RBI’s jurisdiction and the government wants to be part of it, which will cripple RBI’s power,” United Forum’s convenor Samir Ghosh said.
Concerned over the protest leave by RBI staff unions on Thursday, traders and investors stayed away from the market on Wednesday, affecting bond trading.