Former Congress President Rahul Gandhi criticised the Modi Government’s move after it accepted the central bank’s payout of Rs. 1.76 lakh crore to it. Rahul alleged that the Government is “stealing from the RBI”.
In a tweet Rahul Gandhi wrote: “PM & FM are clueless about how to solve their self created economic disaster. Stealing from RBI won’t work – it’s like stealing a Band-Aid from the dispensary & sticking it on a gunshot wound.”
The Reserve Bank of India in a statement on Monday announced a total payout of Rs. 1.76 lakh crore to the Government.
The Congress party tweeted: “Rs. 1.76 lakh cr given to the govt by RBI is almost the exact same amount missing from Budget 2019 announcement. Where was that money spent? Why was it missing from the Budget? Looting the RBI like this only devastates our economy further & reduces credit rating of the bank.”
Since the BJP came into power in 2014, there has been a serious contention between various RBI Governors and the Finance Ministry over the transfer of surplus funds. In the Congress led-UPA rule between 2004 and 2014, the RBI transferred one-fifth of the current figures to the Government’s which was INR₹ 25,000 crore.
In October last year, the government was considering to use Section 7 of the Reserve Bank of India Act — the provision allows Government backed board of directors to exercise all powers of the central bank.
Former RBI Deputy Governor Viral Acharya called the Government’s move to undermine the central bank’s independence catastrophic, as it could trigger an economic and confidence crisis.