Urban Mirror Correspondent
New Delhi, October 31: The Lok Gathbandhan Party (LGP) today criticised the NDA government for continued spat between the Centre and RBI over various operational issues, which has created a serious situation in the banking sector. The LGP said after failing to improve the economy, the NDA government has now been holding the RBI responsible for ills afflicting the economic and financial sectors in the country.
The spokesman of the party said here on Wednesday that turf war between central government and RBI during the last few days has created a piquant situation and has also caused consternation in the market. The spokesman said trouble has 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), fasting 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 now the finance minister Arun Jaitely has 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. Now the RBI headed by Urjit Patel has hit back accusing the government of interference and negating functional autonomy, the spokesman said and added the prevailing situation appeared to be deliberate on the part of the NDA government to pass the buck on the RBI for its failure.
The spokesman said the NDA government cannot escape the responsibility for the present messy situation in economy and financial sectors by such moves. 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. The spokesman said now with 2019 Lok Sabha election fast approaching the NDA in order to hide its failure has started blaming RBI, which people will not accept. The spokesman said the people had mandated the NDA and it is answerable for the situation.
