New Delhi, March 13 -- Shaktikanta Das, who recently retired as Reserve Bank of India (RBI) governor, was appointed as a principal secretary to the Prime Minister, making him the second most important government bureaucrat in the country. Just as retired judges taking up political appointments is perceived as undermining judicial independence, post-retirement appointments of central bank governors could evoke similar anxieties over central bank independence.

Inflation management, just like justice delivery, is a counter-majoritarian function. Courts and central banks often face pressure from elected governments while doing their job. Apart from formulating monetary policy, RBI also regulates government-owned banks and wields vast discret...