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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Indigo crisis: Shivakumar urges Centre to act immediately, bring situation under control
Bengaluru (PTI): With large scale flight cancellations by Indigo airlines leaving passengers stranded, Karnataka Deputy Chief Minister D K Shivakumar on Saturday urged the Centre to act immediately and bring the situation under control.
He called the IndiGo fiasco a the direct result of the govt's monopoly model.
Taking to social media platform 'X', Shivakumar said India is witnessing the worst aviation meltdown in its history. "Thousands of flights cancelled - leaving our people stranded everywhere".
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"The IndiGo fiasco is the direct result of the govt's monopoly model. And as always, it is ordinary Indians who are paying the price," he said.
Shivakumar said that the Kempegowda International Airport in Bengaluru, which is India's 3rd busiest airport with nearly 40 million travellers a year, is in complete chaos.
"This is hurting families, businesses and our national reputation. I urge the Union Government to act immediately and bring this situation under control. Our people deserve better," he added.
Domestic carrier IndiGo cancelled over 800 flights on Saturday, the fifth day of the ongoing crisis, even as the government imposed a cap on airfares and directed the airline to process all refunds by Sunday evening.
