Arguing that the BJP-led government is “hell bent upon” destroying institutions and their autonomy, the Congress Wednesday asked Finance Minister Arun Jaitley to spell out the “overriding emergency” which is making the government take recourse to the never-used Section 7 of the RBI Act. The main opposition told the government that an act of Parliament should be implemented with judiciousness and maturity.
The Congress said Section 7 of the RBI Act was not invoked even when India faced severe financial crises in the past. “We did not invoke Section 7 in 1991 or 1997 or 2008 or 2013. What is the need to invoke the provision now? It shows that government is hiding facts about the economy and is desperate,” former Finance Minister P Chidambaram tweeted.
Congress spokesperson Manish Tewari said, “The purpose of Section 7 in the RBI Act, 1934 is to ensure that in case there is an acute financial exigency which entails an overriding public interest, then the government can issue directions to the central bank. In the seven decades since India’s independence and across so many finance ministers, why was Section 7 never invoked…”
Tewari alleged that the “BJP government is hell bent upon destroying each and every institution on which the Republic of India stands”. Saying that the “recent example” of this was the CBI, he said, “And now the Prime Minister and the Finance Minister have trained their guns on the RBI.”