Dr. Swamy had fired off one more letter – this time on the allotment of licenses to Small Finance Banks.
His allegations mean one of the two things:
(1) The Expert Committee headed by Ms. Thorat did not take into account the criteria laid down by RBI, in the recommended names.
(2) If the Expert Committee did take into account the criteria laid down, then the RBI Governor overrode the recommendations of the Expert Committee and awarded the licenses to completely different set of institutions.
Assuming (2) were preposterous (because if it was the case, the Expert Committee members would have distanced themselves from the final list of licensees), the allegation reduces to (1) above.
So, the Expert Committee members should actually sue him for defamation?
An excellent blog post (ht: Alok Sharma) by Guy Rolnik at the Stigler Center at the University of Chicago Booth School of Business on the travails of Raghuram Rajan compared with that of Stan Fischer when he was the Governor at the Bank of Israel.