Would Be ‘Catastrophic’ If Modi Government Tries To Capture RBI : P Chidambaram

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Former Finance Minister and senior Congress leader P Chidambaram while addressing press conference in Kolkata has accused the Narendra Modi government of trying to “capture” the Reserve Bank of India to tide over its fiscal crisis, warning that any such move would be “catastrophic”.

He alleged that the government had packed the central bank’s board with handpicked nominees, and was making every attempt to push through its proposals at the RBI board meeting on November 19.

“The government stares at a fiscal deficit crisis… The government wants to step up the expenditure in an election year. Finding all avenues closed, in desperation, the government has demanded Rs 1 lakh crore from the reserves of RBI,” the former finance minister said .

“The day of reckoning is November 19 when the RBI board is scheduled to meet. The government has packed the RBI board with its handpicked nominees and is making every attempt to ram through its proposal at the meeting.

“If the RBI either defies the government or the RBI governor resigns, in either events, the consequence will be catastrophic,” he added.