Why are you resigning Urjit Patel, read full news

Why are you resigning Urjit Patel, read full news

The news of the resignation of Reserve Bank of India governor Urjit Patel The matter has come out of hand to the extent that Urjit Patel has made up his mind to resign. The question is, what happened between the Central Government and the RBI that the matter came to the resignation. The whole matter can be understood closely from the news that has been coming from last 3-4 days. It has not happened suddenly that there has been a panic situation between the RBI and the central government. This whole episode can be understood from the beginning.

How the rift between the government and the RBI started

Firstly in some media reports it was said that the relationship between the government and the RBI is not good. It was told that the excited Patel is believed to be responsible for the sourness in relations. The question was how did the relationship get worse? According to News 18, the central government had asked the RBI to give exemption to the rules of lending to certain banks. The government wants to make a new regulator for the payments system. At the same time, the Modi government was also pressurizing the RBI on the issue that it should give some portion of its 3.6 trillion surplus money to the government, which could reduce the fiscal deficit. Apart from this, the government is trying to cut the regulatory powers of the RBI.

After that deputy governor’s statement came

After the government tried to cut the powers of the RBI, the statement of RBI deputy governor Viral Acharya came out. Acharya warned the government that it may be destructive to take the autonomy of the central bank lightly.

His statement was a sign of the government’s pressure on the reduction of policies and reduction in the powers of the RBI. He said, “Those governments who do not respect the autonomy of the central bank, they do not have to face the resentment of the market tomorrow and economic fire. After that, he would cure the day when he ignored the important regulatory body. ‘

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Why are you resigning Urjit Patel, read full news

After the news of dissonance, after coming to the media, Finance Minister Arun Jaitley also made the statement. Jaitley, while criticizing the RBI governor, said that the RBI has failed to curb the banks who have been indulging in indiscriminate loans between 2008 and 2014. He said that this is the reason for the current problem of trapped debt (NPA) in banks. On one hand indiscriminate loans were being distributed, on the other hand the central bank was looking elsewhere … I am surprised that the government was looking at one side and the Reserve Bank’s eye was on the other side. I do not know what the central bank was doing, while he was the regulator of all these things. They kept the curtains on the truth The Finance Minister said that the then government was pushing for loans on banks, which increased the debt to 31 per cent in one year, whereas the average increase was 14 per cent.

Jaitley’s statement made after resignation

The matter got worse after Finance Minister Arun Jaitley’s statement After that the matter of Urjit Patel’s resignation began to appear today. In the report of CNBC TV-18, sources said that Urjit Patel has made up his mind to resign. After cracking down between the central government and the RBI and after the statement of Finance Minister Arun Jaitley, the crack has increased.

According to News 18, to deal with any emergency and to resolve the matter, the government has also started negotiations with the RBI under Section 7 of the RBI Act. Under this, the government can issue guidelines to the RBI in the matter of public interest. CNBC TV-18 is being said that an attempt was made to know the reaction from the government and the PMO on this issue but no information was received.

Why are you resigning Urjit Patel, read full news

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