Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
CO-PRESENTED BY
LIVE TV DownloadNews18 App
News18 English
272
nda:
Needmore seats to Win
Needmore seats to Win
upa:
»
2-min read

Urjit Patel Should Work With Govt or Quit as RBI Governor, Says Head of RSS Affiliate SJM

RBI Governor Urjit Patel should also "restrain his officials from making differences public," said the chief of Swadeshi Jagran Manch (SJM), Ashwani Mahajan, in an interview on Wednesday.

Reuters

Updated:October 31, 2018, 9:57 PM IST
facebookTwittergoogleskypewhatsapp
Urjit Patel Should Work With Govt or Quit as RBI Governor, Says Head of RSS Affiliate SJM
File photo of RBI Governor Urjit Patel. (PTI Photo)
Loading...
New Delhi: The Reserve Bank of India governor should work in sync with the nation's government to support economic growth or he should resign, said the head of the economic wing of Rashtriya Swayamsevak Sangh (RSS).

RBI Governor Urjit Patel should also "restrain his officials from making differences public," said the chief of Swadeshi Jagran Manch (SJM), Ashwani Mahajan, in an interview on Wednesday. "If he doesn't follow discipline it would be better for him to resign," he added.

Earlier in the day, sources told CNBC TV18 that Patel could consider resigning from his post given a breakdown in relations with the government, sparking a sell-off in the rupee and bonds.

Tensions between the RBI and the government have become increasingly public after the bank's Deputy Governor Viral Acharya said last Friday night that undermining central bank independence could be "potentially catastrophic".

His comments indicated that the RBI was pushing back against government pressure to relax its policies and reduce its powers ahead of the 2019 Lok Sabha elections.

In a statement, the government said on Wednesday the RBI's independence was "an essential and accepted governance requirement" but it added that it would continue to extensively consult with the central bank to give its assessments on issues and suggest possible solutions.

Government officials on Wednesday declined to say whether it had for the first time ever used, or threatened to use, powers under the RBI Act that allow it to give the bank instructions. The Economic Times newspaper reported the government had sent letters to Patel in recent weeks exercising those powers.

Mahajan said that the government had every right to use the powers of the RBI act.

FOREIGN INFLUENCE CONCERNS

RSS's Manch is critical of the central bank's hawkish monetary stance, and has criticised the influence in recent years of foreign trained economists including former RBI governor Raghuram Rajan and former chief economic adviser at the finance ministry, Arvind Subramanian.

Mahajan said the central bank and the government should work in tandem to achieve a higher economic growth rate along with lower inflation.

While opposing the appointment of any foreign trained economists at the central bank, he said there was no dearth of "talented persons" with nationalist vision on the RBI board, one of whom could replace Patel if he resigned.

He said higher interest rates were hitting small businesses and there was a need to provide relief to save millions of jobs.

"RBI is adamant, ignoring India's ground realities," he said.

The Manch chief also said the RBI should agree to allow the government to take much of its surplus of cash reserves, estimated at nearly 3.6 trillion rupees, so that they could be invested, bolstering economic growth.

Earlier, a senior finance ministry official said that the government would like the central bank to pay the government a higher dividend considering the size of the reserves.
(Get detailed and live results of each and every seat in the Lok Sabha elections and state Assembly elections in Andhra Pradesh, Odisha, Arunachal Pradesh and Sikkim to know which candidate/party is leading or trailing and to know who has won and who has lost and by what margin. Our one-of-its-kind Election Analytics Centre lets you don a psephologist’s hat and turn into an election expert. Know interesting facts and trivia about the elections and see our informative graphics. Elections = News18)
| Edited by: Padmaja Venkataraman
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
 
 

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results