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Rahul Gandhi said Prime Minister Narendra Modi "destroys institutions"
New Delhi / Mumbai:
The meeting of the board of directors of the Reserve Bank of India began in the middle, according to analysts, of an atmosphere of mistrust with regard to the alleged interference of the government in the operation from the central bank. Congress President Rahul Gandhi tweeted: "Mr. Modi and his gang of friends are still destroying all the institutions they can get their hands on." Today, through his puppets at #RBIBoardeet, he will try to destroy the RBI.I hope that Mr. Patel and his team has a spine and show him his place. "
Although the government claimed that it did not intend to force the RBI to do what it needed, the opposition claimed that the NDA regime intended to tap in the precious reserves of the central bank during the election period. With a heightened sense of vigilance, markets and investors are also keeping a close eye on developments.
Every analyst says that anything that is wrong with the RBI could be a problem. The first signs of unrest appeared in October when reports hinted at the government's interest in Section 7 of the Reserve Bank of India Act or RBI Act, which empowers the center to give instructions to the "lender." of last resort "- which means that the government could take over the policy. Last year, D-Subbarao, former governor of the RBI, said that Section 7 has never been used for more than 80 years in the history of the central bank.
Here are the live updates from the RBI board meeting:
The board meeting of the RBI today will probably be a marathon. The last board meeting on October 23 lasted eight hours and only covered two of the 12 agenda items, said a board member of the RBI. The rest will be discussed today, the member told Reuters.
Previously, the RBI generally proposed new members to the board of directors where the government consulted at least the governor before appointing members. Under the chairmanship of Prime Minister Narendra Modi, there has been virtually no consultation, said a former official directly aware of the appointment process, Reuters reported.
Of the current 18 members of the RBI board, five are from the government bureaucracy, two are representatives of the Ministry of Finance, and two have close ties to Prime Minister Narendra Modi and the BJP. Four of them have professional experience and the other five are Urjit Patel and his four deputy governors.
In August, S Gurumurthy and Satish Marathe, a former banker who was part of the BJP's student wing, were appointed to the RBI's board of directors. And last month, the government appointed Revathy Iyer, a retired bureaucrat, and Sachin Chaturvedi, head of a Delhi-based think tank, removing Nachiket Mor, close to RBI officials.
"Mr. Modi and his gang of buddies continue to destroy all the institutions they can get their hands on, and today, through his puppets at #RBIBoardMeet, he will try to destroy the RBI. Mr. Patel and his team have his place, "said Congress President Rahul Gandhi.
Positive leads from other Asian markets also influenced feelings. The index of 30 stocks traded at 190.81 points, or 0.54%, higher at 35,647.61 points.
The RBI reacted by wondering if the government wanted to destroy its autonomy and warning that when this happened in Argentina in 2010, the financial markets were frightened.
The government lobbied RBI Governor Urjit Patel to subscribe to a series of demands that could help stimulate demand. These include easing borrowing and reducing borrowing costs for small businesses, easing restrictions on loans to 11 state-run banks facing debt and capital adequacy issues, and to provide more liquidity to the fictitious lenders.
The meeting of the Board of Directors of the Reserve Bank of India (RBI) chaired by Governor Urjit Patel has started: ANI News Agency
Last week, there were signs of a truce uncomfortable, with some government officials saying they did not want Urjit Patel to resign and allow it to that some issues be referred to the future, Reuters reported.
The first signs of unrest appeared in October when reports hinted at the government's interest in Section 7 of the Reserve Bank of India Act or RBI Act, which empowers the center to give instructions to the "lender." of last resort "- which means that the government could take over the policy. Last year, D-Subbarao, former governor of the RBI, said that Section 7 has never been used for more than 80 years in the history of the central bank.
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