GUWAHATI: Addressing the media gathering in Guwahati, P Chidambaram expressed his concerns over the BJP government’s plan to take control over the management of the Reserve Bank of India. “The BJP government is showing a determined effort to wreck or capture crucial institutions of the country. The latest victim is the Reserve Bank of India,” he said.
Chidambaram further alleged that the BJP government has no understanding of the role of the central bank and has no respect for the independence of the Governor and warned the people of the country of the consequences of BJP’s “ill-conceived actions.”
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According to reports, the BJP government is planning to override the Governor through the Board of Directors on which the government has planted its hand-picked nominees. Allegedly, the immediate goal of the government is to lay its hands on the reserves of the RBI and appropriate a sum of at least Rs 1 lakh crores to meet its fiscal deficit target and to increase spending in an election year. The government has already taken the extraordinary step of invoking Section 7 of the RBI Act.