RBI GOVERNOR'S RESIGNATION THROWS GOVERNMENT OFF FEET
Charles Dickens’ Oliver Twist was hit by the ladle when he asked for more. Oliver Twist did not ask for a heaven but the exact quantity to satisfy not only his need but of other inmates as per the rights laid down by the system. The remains of under distribution was swallowed by the authorities.
October 26. This year 2018. Viral Acharya, the Deputy of Urjit Patel did not really ask for more but defended the autonomy of RBI. Even Urjit Patel also stood strong to defend autonomy of RBI. This was the splinter strong enough to shake the probable citadel of government in power. The controller of power house felt RBI is asking for more.
Now the question is why the government wanted to have control on RBI? The government which so far for the last 4.5 years misguiding the country with her lies based on manipulated data on liquidity, credit flow and NPAs came in confrontation with RBI.
The RBI boss Urjit proved himself to be a man with steel spine. He was not ready to budge a millimeter to take off controls of RBI governing weak banks. And thus emerged range of issues that tell how the vested interest of the government came to fore.
The government wanted to interfere with regulation, the exclusive domain of RBI. The Central Bank was not in favour of reducing interest rate which the government wanted to favour corporates and also lure the people before 2019 general election for cheaper loans. But the inflation conscious RBI resisted government's nefarious intentions.
Urjit Patel frustrated the dictatorial attitude of the government on the issue of loan restructuring to benefit the corporates. See the audacity of the government dictating RBI not to classify NPAs and reset norms for restructuring.
Government lay all blame on RBI for lack of supervision that made way for Nirav Modi scam. The government fell apart when RBI demanded for more power to catch up with public sector banks to bring them at par with private sector ones.
After IL&FS repayment crisis the government was putting pressure on RBI Governor to extend financial help to cash crunch non banking finance companies (NBFCs). RBI refused. The reason being the government had her own vested interest in many of the NBFCs and as repayment default by IL&FS had already caused much damage to the so called swachh chhavi of the government.
The Central Bank boss could not take the removal of Nachiket Mor from the RBI board. He was removed more than two years before his term was to end just because Mor opposed government's demand for a higher dividend so as to close the doors for government to please the corporates. The government did such a petty act of removal without even formally informing him.
The government crossed all limits when it proposed to keep RBI away as sole regulator of payment and settlement system. It is for the first time in the history that RBI released a dissent note for public information on the proposed appointment of Payments Regulatory Board (PRB) independent of RBI. RBI said that the PRB must remain with the Reserve Bank and headed by the governor, Reserve Bank of India and thereby opposed the proposal of government to set up a separate and independent regulator for the payments industry in the country.
In the light of above putting in papers by Urjit Patel is understandable though his version is personal reason for quitting RBI.
The government's proposal for payment and settlement system independent of RBI is just to set up a payment industry with full control of the government in power to use, abuse and misuse RBI. Government has been arm twisting RBI for long to have her control on RBI. Urjit Patel quit honorably before being hit by the ladle. The authorities stand exposed. Government stands exposed. Oliver has grown up to ask for more again and again. Strongly.
October 26. This year 2018. Viral Acharya, the Deputy of Urjit Patel did not really ask for more but defended the autonomy of RBI. Even Urjit Patel also stood strong to defend autonomy of RBI. This was the splinter strong enough to shake the probable citadel of government in power. The controller of power house felt RBI is asking for more.
Now the question is why the government wanted to have control on RBI? The government which so far for the last 4.5 years misguiding the country with her lies based on manipulated data on liquidity, credit flow and NPAs came in confrontation with RBI.
The RBI boss Urjit proved himself to be a man with steel spine. He was not ready to budge a millimeter to take off controls of RBI governing weak banks. And thus emerged range of issues that tell how the vested interest of the government came to fore.
The government wanted to interfere with regulation, the exclusive domain of RBI. The Central Bank was not in favour of reducing interest rate which the government wanted to favour corporates and also lure the people before 2019 general election for cheaper loans. But the inflation conscious RBI resisted government's nefarious intentions.
Urjit Patel frustrated the dictatorial attitude of the government on the issue of loan restructuring to benefit the corporates. See the audacity of the government dictating RBI not to classify NPAs and reset norms for restructuring.
Government lay all blame on RBI for lack of supervision that made way for Nirav Modi scam. The government fell apart when RBI demanded for more power to catch up with public sector banks to bring them at par with private sector ones.
After IL&FS repayment crisis the government was putting pressure on RBI Governor to extend financial help to cash crunch non banking finance companies (NBFCs). RBI refused. The reason being the government had her own vested interest in many of the NBFCs and as repayment default by IL&FS had already caused much damage to the so called swachh chhavi of the government.
The Central Bank boss could not take the removal of Nachiket Mor from the RBI board. He was removed more than two years before his term was to end just because Mor opposed government's demand for a higher dividend so as to close the doors for government to please the corporates. The government did such a petty act of removal without even formally informing him.
The government crossed all limits when it proposed to keep RBI away as sole regulator of payment and settlement system. It is for the first time in the history that RBI released a dissent note for public information on the proposed appointment of Payments Regulatory Board (PRB) independent of RBI. RBI said that the PRB must remain with the Reserve Bank and headed by the governor, Reserve Bank of India and thereby opposed the proposal of government to set up a separate and independent regulator for the payments industry in the country.
In the light of above putting in papers by Urjit Patel is understandable though his version is personal reason for quitting RBI.
The government's proposal for payment and settlement system independent of RBI is just to set up a payment industry with full control of the government in power to use, abuse and misuse RBI. Government has been arm twisting RBI for long to have her control on RBI. Urjit Patel quit honorably before being hit by the ladle. The authorities stand exposed. Government stands exposed. Oliver has grown up to ask for more again and again. Strongly.
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