Amidst speculations over Govt-RBI stand off, Jaitley asks how a mere discussion be considered ‘destruction’ of an institution

"In some situations, the autonomous institutions also have to be informed that there is some difficulty arising in the system that requires to be corrected," Jaitley added.

Finance Minister Arun Jaitley, while speaking at the Times Networks India Economic Conclave today, stated that though there are ‘two or three areas of differences’ between the RBI and the Government, how a mere discussion on its functioning could be considered “destruction” of an institution.

Amidst allegations by the opposition that his government has created a situation wherein the Reserve Bank Governor, Urjit Patel was forced to resign, Jaitley went on to list several of actions initiated by past governments including those of Congress PMs Jawaharlal Nehru and Indira Gandhi, asking RBI Governors to resign.

Speaking at the conclave Jaitley mentioned that issues revolving around the credit flow in the economy and liquidity support were areas where the Government had differences with the RBI and clarified that the government had initiated a ‘discussion’ to convey its concern over these issues.

- Advertisement - - Article resumes -

“A discussion with an important institution, which is independent and autonomous, to tell it that its a part of your (RBIs) functions and therefore this is an important area of an economy which you must look at, how is it the destruction of the institution?” he questioned.

According to reports, the RBI had voiced its concern as it felt that RBI’s autonomy was being compromised when the Government was trying to get involved in its functioning, under the never-used Section 7 of the RBI Act which provides for the central government forcing down decisions in public interest.

Clarifying the Governments stand, Jaitley said, “We are the sovereign government, we are the most important stakeholders as far as the management of an economy is concerned,” Jaitley said, in reference to the discussions with RBI.

He reiterated that the credit flow of the economy and liquidity were the sole responsibility of the RBI. Jaitley furthered that the Government did not intend to “take over the function,” rather it only intended to initiate discussions using instruments which force a discussion.

“In some situations, the autonomous institutions also have to be informed that there is some difficulty arising in the system that requires to be corrected,” he added.

Stressing that it is mandatory for the RBI’s policies to be in sync with the economic policies, Jaitley furthered that if the government is not able to convey the difficulties in the system, it would be failing its duty, he said.

Urjit Patel, who succeeded Raghuram Rajan as the head of India’s central bank in September 2016, resigned from the post earlier this week citing personal reasons. The government has appointed Shaktikanta Das as the new RBI governor.


Share This Post and Support:
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Most read articles recently

AAP propagandist tweets false claim about Adani Group, deletes due to fear of defamation

Earlier Delhi's Education Minister Manish Sisodia had also tweeted false claim about Adani Group

Rahul Gandhi’s lucrative and seemingly clandestine means of income and his links to scam accused FTIL, Unitech

How does Rahul Gandhi earn to buy land and other properties? A mystery we try to unravel
Congress' official twitter handle tweets the wrong date of Shahidi Diwas

BJP’s aggressive candidate list for 2019 election like a blizzard on Congress led by Rahul Gandhi

The boldness of BJP is apparent in that it has 21 present Union and ministers of state in the list, alongside the candidature of its party president, Amit Shah from Gandhinagar in Gujarat.

Watch: Embarrassment for Hardik Patel, crowd chants ‘Modi, Modi’ as he addresses a Holi event

Red-faced, Hardik Patel had to stop speaking and left the place soon after
Prakash Raj was welcomed with pro-Modi slogans in Bengaluru

Actor-turned-politician Prakash Raj greeted with pro-Modi slogans as he went to file his nomination

Prakash Raj seemed visibly miffed with a large number of Modi supporters welcoming him with pro-Modi slogans in Bengaluru

How Caravan and Congress’ attempts to create ‘bribegate’ before 2019 election fell flat

The 'bribegate' that Congress and The Caravan tried to cried falls flat on its face on several counts. 

‘Krantikari’ journalist Punya Prasun Bajpai sacked, again, this time from Surya Samachar

Punya Prasun Bajpai and his team of 25 had joined Surya Samachar last month

The Wire journalist wishes Holi with ‘Bismillah’, devout Muslims say it’s against Islam

Celebrating Hindu religious festivals is not the only that triggers abuses and threats from Muslim radicals

Jammu and Kashmir Police officer Imtiyaz Hussain claims his life being under threat after he exposed Pro-Pak Islamists and ‘journalists’

Jammu and Kashmir policeman reveals how certain 'journalists' work hand in glove with the enemies across the border in Pakistan

Netizens share hilarious ‘diary entries’ to mock Congress’ latest shoddy allegations against BJP

Congress shared photocopy of a handwritten note where they claimed Yeddyurappa signed diary entry incriminating himself

Latest articles

Connect with us

148,342FansLike
120,130FollowersFollow
30,996SubscribersSubscribe

Don't miss these


Share This Post and Support: