Congress manifesto says party won't interfere with RBI's functioning, will respect bank's autonomy
"Congress will respect the autonomy of the RBI in matters reserved to the RBI under the Reserve Bank of India Act, 1939, including the formulation of monetary policy," said the manifesto.
- Apr 2, 2019,
- Updated Apr 8, 2019 5:11 PM IST
Congress President Rahul Gandhi on Tuesday released its Lok Sabha election manifesto that promises to "reverse the unwarranted and illegal interference by the BJP government" into the functioning of the Reserve Bank of India (RBI).
"Congress will respect the autonomy of the RBI in matters reserved to the RBI under the Reserve Bank of India Act, 1939, including the formulation of monetary policy," said the manifesto.
However, the RBI Governor shall periodically render an account to a committee of Parliament, the Congress mentioned in its manifesto. It promises that the government will work closely with the RBI to ensure that fiscal policy and monetary policy are aligned to achieve the common goal of growth with price stability.
During the Prime Minister Narendra Modi's five-year tenure, India has witnessed innumerable spats between the banking regulator and the government of India. The breakdown of trust and the turf war between the two came out in public after RBI Deputy Governor Viral Acharya warned the government of catastrophic consequences if RBI's independence was curbed. Having clashed with the government over policy issues, former RBI Governor Urjit Patel resigned on December 10, 2018 and was swiftly replaced by a former finance ministry official, Shaktikanta Das.
The issues include relaxation in prompt corrective action, transfer of surplus capital, restructuring scheme for MSMEs, lower capital adequacy ratio for banks, liquidity support to NBFCs and making RBI board more operational and participative in making decisions.
Congress President Rahul Gandhi on Tuesday released its Lok Sabha election manifesto that promises to "reverse the unwarranted and illegal interference by the BJP government" into the functioning of the Reserve Bank of India (RBI).
"Congress will respect the autonomy of the RBI in matters reserved to the RBI under the Reserve Bank of India Act, 1939, including the formulation of monetary policy," said the manifesto.
However, the RBI Governor shall periodically render an account to a committee of Parliament, the Congress mentioned in its manifesto. It promises that the government will work closely with the RBI to ensure that fiscal policy and monetary policy are aligned to achieve the common goal of growth with price stability.
During the Prime Minister Narendra Modi's five-year tenure, India has witnessed innumerable spats between the banking regulator and the government of India. The breakdown of trust and the turf war between the two came out in public after RBI Deputy Governor Viral Acharya warned the government of catastrophic consequences if RBI's independence was curbed. Having clashed with the government over policy issues, former RBI Governor Urjit Patel resigned on December 10, 2018 and was swiftly replaced by a former finance ministry official, Shaktikanta Das.
The issues include relaxation in prompt corrective action, transfer of surplus capital, restructuring scheme for MSMEs, lower capital adequacy ratio for banks, liquidity support to NBFCs and making RBI board more operational and participative in making decisions.