Is a Joint Secretary running RBI? asks P Chidambaram

The United Forum of Reserve Bank Officers and Employees had earlier written a letter to RBI Governor Urjit Patel saying that employees were feeling “humiliated” by events since demonetisation.

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Chidambaram also ‘welcomed’ ex-RBI governor Yaga Venugopal Reddy’s criticism on demonetisation. (Source: ANI/Twitter)

Former finance minister and Congress leader P Chidambaram on Saturday spoke on the alleged government interference in the Reserve Bank of India’s functioning. “Is a Joint Secretary running RBI? Employees Union protests government interference. Bravo!” he tweeted. Chidambaram was referring to the grievance expressed by the United Forum of Reserve Bank Officers and Employees who wrote a letter to RBI Governor Urjit Patel saying that employees were feeling “humiliated” by events since demonetisation. The workers also alleged that the government has been impinging on the bank’s autonomy by appointing an official for currency coordination.

(4/4) Is a Joint Secretary running RBI? Employees Union protests government interference. Bravo!

— P. Chidambaram (@PChidambaram_IN) January 14, 2017

Refuting the allegations by the RBI union, the finance ministry had said that the government fully respects independence and autonomy of the central bank. “Consultations between the government and RBI are undertaken on various matters of public importance wherever such consultation is mandated by law or has evolved as a practice. Consultations mandated by law or as evolved by practice should not be taken as infringement of autonomy of RBI,” the ministry said in a statement.

Chidambaram also ‘welcomed’ ex-RBI governor Yaga Venugopal Reddy’s criticism on demonetisation. The senior Congress leader tweeted, “Adding to the voices against demonetisation are ex-RBI Governor Reddy and BMS. Welcome!” His comments come in the wake of criticism by the largest central trade union in the country, the Bharatiya Mazdoor Sangh (BMS). “BMS supported demonetisation. Now it has discovered cash shortages, job loss, retrenchment, farmers’ distress,” tweeted Chidambaram.

Noting Reddy’s statement on the demonetisation move, he said, “Ex-RBI Governor Reddy would have advised against demonetisation. If overruled, he would have resigned. Bravo!”

— With PTI inputs

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