RBI: Frying pan to fire
A tea seller can become the Prime Minister of the country. That would be the victory of democracy. At the same time, if a PM can choose a television serial actor to head the most significant portfolio of HRD ministry and be given the responsibility of looking after all universities; or appoint a person with graduation in history to be the governor of RBI, it would be a loss of the power democracy gives us.
A PM need not be highly educated but he has the choice of having experts and knowledgeable people around him. But what would happen if the PM was to have businessmen around him who would influence his every decision? The answer is right before us.
Shaktikanta Das has been chosen to be the governor of RBI. In the past, this chair was occupied by some of the best brains with expertise in economics at global level. This chair would now belong to a person with post-graduation in history and an added course in financial management. This has thrown the RBI from frying pan to fire.
RBI was going through tense moments when Raghuram Rajan was replaced by Urjit Patel. In the next few months of Patel assuming the post, government thrust demonetization on the nation. This decision had nothing to do with the RBI. This was the main reason for the failure of demonetization which was done to protect the interest of only few people.
Some corporate companies, political organisations and businessmen were the clear beneficiaries of this note ban. Common people suffered endlessly. Economy fell flat. Modi government used Urjit Patel who would be dancing according to the tune of the government.
Except for accounting for the old currency notes, Urjit Patel didn’t take any great decisions as the Governor of RBI. He had no plans to even help the country lift itself from the quagmire of economic distress that was progressing fast. He could not even explain the impact and long term results of note ban to the people of the nation. He woke up only when the government couldn’t recover the stashed black money, and note ban had a mammoth impact on the country’s progress.
Patel woke up only when the government was attempting to make RBI responsible for the failure of note ban. Though he was a puppet at the hands of Modi, Patel knew about the ill effects of note ban since he is an economic expert himself. He knew the country was headed to an economic distress. He couldn’t tolerate the fact the government would use him to commit more blunders and he was forced to speak out.
He began to speak to the media about the external influences working within the RBI and their impact. Patel was already close to tendering his resignation and he probably assumed it was better if he quit without having to commit more blunders to put RBI and nation into trouble.
This must have been an honest economist in him speaking up. RBI strongly protested against relaxing the norms of lending. If this was done, the banks could extend another four crore loan to the big corporate giants who also happen to be friends of Modi. Not only that, with the new circular that was issued out Feb 12, 2018 it was possible for the corporate companies who had already taken the loans to escape the bankruptcy noose.
With this, the Adani Group, Essaar and TATA could get an extended life for their electric projects. But since Patel saw how this could negatively impact the future of India, he did not want to risk this decision. Hence the puppet cut loose the string which was dictating his movements.
We can now easily imagine the forces that did not want former RBI governor Raghuram Rajan for the second term. His fate was sealed when he sent a list of NPA and businessmen who had used loans deviating from the purposes that they had raised them for.
With a plan to turn RBI into private treasury, Rajan was sent out and Patel was brought in. BJP was recognized as the richest party in the world post demonetization. Corporate companies got fatter. Now the government is all set to implement Section 7 to extend more privileges to corporate companies and make them even fatter and privileged at the cost risking the national economy time and again.
At a time like this, Patel has found an escape route. His resignation does not absolve him of all the wrongs he was party to. He needs to apologise to the nation for being part of demonetization.
Appointment of the new governor may well complicate the matters by that much. Shaktikanta Das supported note ban totally and he is also totally subservient to the Modi clan. He is not a financial expert at all. The way education sector was compromised with, having handed over the portfolio of human resource to Smriti Irani who allowed massive interference of RSS, Corporate powers are now planning to do the same with RBI by bringing in a man with history for his qualification so that they can mess it up totally. We can only hope this does not severely compromise the future of the country.
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World saw valour, courage of Indian armed forces through Operation Sindoor: President
New Delhi (PTI): President Droupadi Murmu on Wednesday said the world saw the valour of Indian armed forces through Operation Sindoor when they destroyed terror camps on the strength of their own resources and asserted that any terror act will be responded with decisive action.
"India has proved that power can be used with responsibility and wisdom. The world has seen the valour and courage of Indian armed forces through Operation Sindoor," Murmu said in her address to both Houses of Parliament, marking the beginning of the Budget Session.
"Our nation, on the strength of our own resources, destroyed terror camps. My government sent a message that any act of terror will be responded to with resolute and decisive action," the President said, amid thumping of desks by Prime Minister Narendra Modi and other parliamentarians.
Murmu said the suspension of the Indus Water Treaty was part of India's fight against terror.
"We are also working on Mission Sudarshan Chakra to further strengthen national security," the President said, adding that security forces have also taken decisive action against Maoist terror.
Following Operation Sindoor, she said, the trust on Indian defence platforms has increased.
Murmu further said her government was committed to social justice in the country.
In the third term of the government, she said, work is being done to further empower the poor, and social security benefits are available to nearly 95 crore citizens now.
"My government is committed to true social justice," she said, adding that 25 crore Indians moved out of poverty in the last 10 years.
The President also said the government has been successful in tackling corruption and scams, and ensuring proper use of public funds.
"For India, the end of the first 25 years of this century has been filled with several successes, proud achievements and extraordinary experiences. In the last 10-11 years, India has strengthened its foundation in every sector," she said.
Lauding India's celebration of the 350th martyrdom day of the ninth Sikh guru, Guru Tegh Bahadur, and the country's tribute to revered tribal leader and freedom fighter Birsa Munda on his 150th birth anniversary, Murmu said, "when the country remembers the contribution of its ancestors, the new generation gets inspiration, which further speeds up our journey towards Viksit Bharat (Developed India)."
"The country celebrated the 350th Shaheedi Diwas of Sri Guru Tegh Bahadur Ji. During the 150th birth anniversary of Birsa Munda, the entire country paid him tribute and remembered his contribution to the tribal community," the President said.
"The events related to the 150th birth anniversary of Sardar Vallabhbhai Patel further strengthened the sense of Ek Bharat, Shresht Bharat (One India, Best India). The entire country became witness to how Bharat Ratna Bhupen Hazarika's birth anniversary celebrations filled the country with music and a sense of unity," Murmu said.
The President's mention of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) scheme was met with loud protests from the Opposition benches.
Murmu said the VB-G RAM G initiative would provide guarantee for 125 days of work, would stop corruption and leakages, and provide a new impetus to rural development.
The Opposition members raised slogans demanding its rollback, even as the treasury benches thumped their desk in support of the scheme.
The President had to take a brief pause amid opposition cries of "vapas lo" (roll back) against the Act that replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
The Opposition parties have been demanding withdrawal of the VB-G RAM G Act and restoration of MGNREGA as a rights-based law in its original form, the right to work and the authority of panchayats.
The government has, meanwhile, claimed that the new Act will further strengthen the guarantee for rural employment.
