India's central bank is facing an assault on its authority. Powerful opponents in New Delhi want to set up a tribunal to second-guess the Reserve Bank of India's decisions. They also want to hand over supervision of bond trading to the stock market watchdog. Undermining the monetary authority would be a mistake. Investors would rather live with a bossy RBI than a weak one.The campaign to clip the RBI's wings started gathering momentum after the publication of a controversial 2013 report by an advisory body set up by the finance ministry. The Financial Sector Legislative Reforms Commission (FSLRC) recommended that the central bank concentrate on setting monetary policy and regulating banks.

Source - http://www.thehindubusinessline.com