Urban Mirror Correspondent
New Delhi, November 20: The Lok Gathbandhan Party (LGP) today criticised the NDA government for undermining the autonomy of Reserve Bank of India (RBI). The LGP said the RBI board meeting has tried to resolve the differences with the NDA government but still there are several contentious issues, especially about allowing liquidity to non-banking financing companies.
The spokesman of the party said here on Tuesday row between the government and RBI over operational issues are unfortunate and has caused consternation in the banking sector. Pointing out that RBI is the keeper of the India’s financial system, the spokesman said that the NDA government cannot be allowed to use it for its vested political interest. The spokesman said the RBI functioning should be above political meddling. Since the role of the RBI is not just limited to tackling inflation or regulating banks, the spokesman said it has responsibility to ensure financial stability without any political consideration. However during the last few months a piquant situation is prevailing because of the on-going cynical confrontationist attitude of the NDA government, the spokesman said, adding that RBI credibility is important and should not be compromised or messed up. The spokesman said instead of making efforts to brow beat the RBI on operational issues it required to be thrashed out through proper communication. The spokesman said catastrophic impact of demonetisation has been still going on and now the government is against the RBI’s Prompt Corrective Action (PCA) about high proportion rising bad loan.
The spokesman said that if RBI’s functional autonomy is seen to be undermined it would have adverse impact on investment having overall fall out on the economy. The spokesman said NDA government’s blame game against the RBI for ill afflicting the economic and financial sector is wholly unjustified as the government is itself responsible for this situation. 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.
