Chennai: Finance Minister Arun Jaitley said having a different opinion is not confrontation, on the sidelines of recent developments that pertain to the RBI.
Urjit Patel made a shock announcement of his resignation after differences between him and the Centre deepened and the Finance Minister said, “Having an opinion (that is) different is not confrontation”.
He stated that the government and Mint Street have only different views on some aspects of the broader money management.
Speaking at a conference yesterday, Jaitley said, “You’ve had several incidents where governments in the past have had a different view from what RBI had, and then those differences have been settled, or the governors have made way.”
Jaitley’s statements came ahead of today’s board meet at the RBI where new Governor Shakthikanta Das will hold discussions on varying matters.
“RBI has the responsibility as far as credit and liquidity are concerned. We are not taking over this function. Therefore, on all levels, meetings and discussions will be between the bureaucracy at the level of the PM…using all instruments available with us…to force this issue…for a discussion,” the Minister said.
“As a sovereign accountable government, we find this problem is real as far as the Indian economy is concerned and, therefore, in order to maintain our place as a high-growth economy, this is a problem the RBI must address. How is it an issue of confrontation?,” Jaitley asked.
“If the government of day is not able to convey the difficulties in the system, it would be failing in its responsibility as far as governance is concerned,” he said.
The Minister cited examples as to former governments having differences with the RBI. He said, “PM Nehru asked Rama Rau to resign, Indira Gandhi asked Governor S Jagannathan to resign, FM Yashwant Sinha asked RN Malhotra to resign. During P Chidambaram’s tenure you had two governors with whom he was not on talking terms.”