India Needs to Strengthen Its Anti-Corruption Agency: OECD

OECDThe Organization for Economic Co-operation and Development (OECD) has carried out a survey called Economic Survey of India, 2011, and has found that corruption is the major issue of the country, which is constantly rising,

The OECD has found during its survey that India is required to strengthen its anti-corruption agency in order to deal with the rising issue. The OECD has suggested that an independent head should be appointed in the agency, so that transparent and accountable regulatory functions could be performed.

The OECD has advised the government to change its capital controls so that more foreign investment could take place in the government and corporate bond markets. The OECD wants the Reserve Bank of India (RBI) to sell its electronic government bond market and the clearing house to the private sector. The OECD said that the RBI must move the regulation of foreign exchange markets and of the government bond market to the Securities and Exchange Board of India (SEBI).

The OECD has also suggested the RBI to closely monitor the increasing inflation and volatile capital flow in the country and to further stiffen its monetary policy.