Modi government trying to capture RBI : P Chidambaram

While addressing a press conference in Guwahati, Chidambaram said that there are two types of reserves in RBI and no government in past ever asked the reserves to a government for spending.

This government is facing serious fiscal deficit crisis and so the government demanded at least Rs 1 lakh crore from the reserves of RBI to meet its fiscal deficit target, he said.

“The government thought after demonetisation that, the government will get Rs 3-4 lakh crore and the Attorney General told the Supreme Court and the Finance Minister said to the media. Today of course he denied it, but what he said is there,” Chidambaram said.

The senior Congress leader further said that, the Prime Minister had appealed to the people on August 15, 2014 to put a moratorium of 10 years on all issues that were divisive and controversial.

“Today, that appeal has been forgotten and the BJP – from the PM to Chief Ministers to ministers to party functionaries to pracharaks to supporters – has embraced Hindutva and has re-opened every issue that is divisive, controversial and polarising. It is our duty to caution the people that, the BJP is taking the country on a path to conflict and economic disaster,” P Chidambaram said.

“Our immediate concern is the BJP government’s determined efforts to wreck or capture crucial institutions of the country. The latest victim is the Reserve Bank of India,” Chidambaram said.

Chidambaram further said that, the government has already taken the extraordinary step of invoking Section 7 of the RBI Act.

“The BJP government is planning to override the governor through the Board of Directors on which the government has planted its hand-picked nominees. I fear the worst at the next meeting of the board on November 19, 2018, and warn the people of the country of the catastrophic consequences of the BJP government’s ill-conceived actions,” Chidambaram said.