Urban Mirror Correspondent
New Delhi, December 11: The Lok Gathbandhan Party (LGP) today said that the resignation of RBI Governor Urjit Patel was unfortunate and would send a wrong message to the Indian economy which has been facing problems on various counts. The LGP said the tussle going on between the RBI and NDA government for quite some time has finally led to departure of the Governor which is a blow to the independence and autonomy of the institution.
The spokesman of the party said here on Tuesday that spat between the NDA government and RBI over operational issues had created a serious situation. The spokesman said even though an impression was created after RBI board meeting last month that contentious issues had been settled but it was just a show off by the government. The spokesman said the resignation would certainly leave a trail of bitterness having adverse impact on market economy.
The spokesman said after failing to improve the economy, the NDA government has for long been holding the RBI responsible for ills afflicting the economic and financial sectors in the country which has finally led to this unsavioury situation.
The spokesman said trouble had been brewing between the government and the RBI over a host of issues including interest rates to non-performing assets, credit liquidity to non-bank finance companies (NBFCs), fast increasing bad loans etc. However the recent comment of deputy governor RBI Viral Acharya over NDA government short-term approach in dealing with issues has led to spat with the government and later the finance minister Arun Jaitely had directly blamed the RBI of failing to do its job effectively during indiscriminate lending by banks which has now turned into Rs ten lakh crore bad loan.
The spokesman said the NDA government cannot escape the responsibility for the present messy situation in economy and financial sectors. The spokesman said huge accumulation of NPAs is the result of criminal nexus between banks, businessmen and politicians over the years in which NDA is equally responsible. There is no doubt that RBI has not been able to perform its duty effectively in this connection, the spokesman said, adding the successive governments have been equally responsible.
