Most of the Reserve Bank of India’s (RBI) 17,000 employees went on strike on Thursday nationwide to demand higher pensions and to protest against decreasing the regulatory authority of the central bank. The central bank referred to the strike as “mass casual leave” and reported “some interruptions” to clearing and settlement operations, but it reported that other systems were operational. Basic pensions for RBI employees do not increase with inflation, and employee unions in a joint statement expressed their concern that this “puts thousands of RBI pensioners in extreme penury in these days of soaring prices, increased medical costs, etc.” The Indian government has proposed legislation that would establish a new monetary policy committee, which would be dominated by government nominees, to set interest rates, decreasing the RBI’s independence and authority. Currently, the RBI governor has complete autonomy in setting interest rates. The unions have warned that additional strikes are possible if their demands are not met.
Source (BBC,FT)
