Former Finance Minister P. Chidambaram expressed concern on Wednesday on reports that the government had invoked a hitherto unused section of the RBI Act to direct the central bank to act at its bidding, saying it shows that the government is “desperate” and “hiding facts” about the economy.
“If, as reported, government has invoked Section 7 of the RBI Act and issued unprecedented directions to the RBI, I am afraid there will be more bad news today,” Chidambaram said in a series of tweets.
He said that the Congress governments did not invoke Section 7 in 1991 or 1997 or 2008 or 2013. “What is the need to invoke the provision now? It shows that government is hiding facts about the economy and is desperate,” Chidambaram maintained.
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Section 7 of the RBI Act, 1934 allows the government to issue directions to the RBI, after consultation with the Governor of the bank, on issues of public interest. Former Finance Minister Yashwant Sinha, who is also a critic of the Narendra Modi government attacked the government alleging it of hell bent of destroying all the institutions of the country.
“After CBI it is the turn of RBI. The government is hell bent on destroying all the institutions of our country. High time the people woke up to these surgical strikes against our own institutions,” the former BJP leader said in a series of tweet. “If indeed government has issued directives to the RBI, then its governor should resign forthwith,” Sinha added.