New Delhi: Taking a dig at the RBI-government rift, CPI-M General Secretary Sitaram Yechury on Wednesday said the Modi government could not even handle its “own appointees” besides other crucial matters. Tensions between the RBI and government spilt into the public domain after the RBI Deputy Governor Viral V Acharya stated that undermining the central bank’s independence could be “potentially catastrophic”. Also Read - Major Setback For Congress in Gujarat as 2 Party MLAs Resign Ahead of Rajya Sabha Polls
“As even routine governance falters and slips – the Economy slumps further. This govt is incapable of handling its own appointees, institutions and crucial matters. These years will go down as among the darkest in our history. Spend ₹5000 crore on own publicity and leave a mess,” Yechury said in a tweet. Also Read - Fact Check: Pregnant Elephant Was NOT 'Fed' Cracker-Stuffed 'Pineapple' in Kerala's 'Malappuram', Maneka Gandhi Called Out For Communalising Animal's Death
In the series of tweets, he further tweeted, “Judiciary, Parliament, CBI… and now RBI. Modi govt has tried to damage every single institution. Now, this attempt to hold institutions responsible for the mess is a desperate bid to transfer blame for his utter failure of the last 4.5 years.”
Earlier in the day, the report came in that central’s bank Governor Urjit Patel is likely to resign from his post. This comes amid the government invoking never-before-used powers under the RBI Act that allow it to issue directions to the central bank governor on matters of public interest.
The government is believed to have sent at least three letters to the RBI governor in recent weeks exercising powers under Section 7 of the RBI Act on issues ranging from liquidity for non-bank finance companies, capital requirements for weak banks and lending to small- and medium-sized companies.
Section 7 of the RBI Act says “the central government may from time to time give such directions to the bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest”.
However, the government clarified that it has “nurtured and respected” autonomy of the central bank and has been holding extensive consultations with it on many issues.
However, the statement did not mention about the government citing the never-before-used power of issuing directions under the Act to RBI Governor to seek a resolution to differences with the central bank.