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FM, RBI chief should meet often, says Chidambaram

As per reports, the long-simmering discord between the central bank and the government is turning into a very public brawl.

By: Express News Service | New Delhi | Published: October 30, 2018 2:54:08 am
RBI, Viral Acharya, urjit patel, rbi vs government, Chidambaram, rbi vs modi government, reserve bank of india, RBI deputy governor on economy Senior Congress leader P Chidambaram (Express photo/File)

Days after RBI deputy governor Viral Acharya warned the government against undermining the central bank’s autonomy, former finance minister and senior Congress leader P Chidambaram on Monday said that there must have been some “grave reason” for the top official to air such views publicly and argued that the finance minister and the RBI Governor should meet often to discuss issues rather than talking to each other through lectures.

Chidambaram told the media: “It is not only too early to comment, there is only sketchy information available, but there must have been some grave reason why the Deputy Governor delivered that speech. And in the footnote he says that he is grateful to (RBI Governor) Dr Urjit Patel for encouraging him to explore the subject. So I think the matter is serious enough and it will be best if the RBI and the government don’t talk across each other through lectures – we have had two already. It might be better if the time-honoured practice of the Finance Minister and the Governor of the RBI meeting often in private and talking issues.”

READ | Tussle not new, Viral Acharya just flagging new issues

Meanwhile, Congress president Rahul Gandhi said Monday it is nice to see RBI Governor Urjit Patel “finally defending” the central bank from Prime Minister Narendra Modi and noted that the country will never allow the BJP-RSS combine to “capture” institutions, according to a PTI report.

He said it was not too late for the RBI governor to stand in defence of the Reserve Bank of India, after reports said there was a rift between Patel And ‘Team Modi’.

READ | Undermine RBI autonomy, face markets’ wrath, ignite economic fire, says Deputy Governor

“Nice that Mr Patel is finally defending the RBI from ‘Mr 56’. Better late then never (sic). India will never allow the BJP/ RSS to capture our institutions,” Gandhi said on Twitter.

READ | AIRBEA: ‘Undermining RBI a recipe for disaster’

As per reports, the long-simmering discord between the central bank and the government is turning into a very public brawl. Acharya in a hard-hitting speech Friday on central bank’s independence startled his audience by invoking Argentina of 2010.

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