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RBI’s credibility, reputation could be irretrievably damaged: Chidambaram (Lead)
Kolkata, Nov 8 (IANS) Coming down heavily on the Narendra Modi government for making efforts to “capture” the RBI, Congress leader and former Union finance minister P Chidambaram on Thursday said the chain of events could “irretrievably damage” the credibility and reputation of the apex bank.
Chidambaram alleged the Modi government demanded Rs 1 lakh crore from the reserves of the RBI in desperation as it wanted money to “step up expenditure in an election year” and found all other “avenues closed”.
“As things stand today, the government will not be able to meet the fiscal deficit target of 3.3 per cent in 2018-19. Besides, the government wants money to step up expenditure in an election year.
“Finding all other avenues closed, in desperation the government demanded Rs 1 lakh crore from the reserves of the RBI. When the RBI governor (Urjit Patel) refused to oblige, the government took the extraordinary and unprecedented step of invoking section 7 of the RBI Act,” Chidambaram told mediapersons.
“If the governor stands his ground, as our hope is he will, the government is planning to issue a direction to the RBI under section 7 directing the RBI to transfer Rs 1 lakh crore into the government’s account.
“In that event, the governor has only two options. One, to transfer the money, or two, resign.
“In my view, whichever option is taken by the governor, it will irretrievably damage the credibility and reputation of the RBI. It will also mean capture of the RBI by the government. One more crucial institution will fall from grace,” he said.
Chidambaram said November 19 would be the day of reckoning, as the RBI board is scheduled to meet on that day.
He alleged the government has packed the RBI board with its handpicked nominees, and is “making every effort to ram through its proposal” at the board meeting.
“The consequences of demonetisation have been catastrophic. … Let’s wait and see, whether there will be another catastrophe on November 19,” he said on the second anniversary of the demonetisation exercise carried out by the Modi government.
Replying to a query, Chidambaram said if the government followed through on section 7 of the RBI Act, and issued a direction to the RBI, “it will lead to a catastrophe”.
“This government does not know what catastrophic consequences there will be, if the RBI either defies the government, or the RBI governor resigns. In either event, the consequences will be catastrophic”.
Chidambaram hoped better sense will prevail between now and Nov 19.
“But all the information I am getting is the government is determined through its handpicked nominees to force its decision upon the RBI board,” he said.
Refering to former RBI governor Raghuram Rajan, Chidambaram said he has pointed out that the RBI board was not like of the board of directors of a company.
“RBI is not a company. It is not a board-managed company. The powers of RBI have to be vested in the governor, and the governor has to exercise those powers. THe RBI board is to give advise and guidance.
“But if the government converts the RBI into a board or a company, and treat it as a board-managed company, and ram through its decisions through the board, the consequences will be catastrophic. I don’t want to spell out the consequences, but it will be truly catastrophic,” he added.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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