Resignation by RBI Governor would send bad signal to global markets: Veerappa Moily
Bengaluru, Nov 18: Amid demands from some quarters for RBI governor Urjit Patel's resignation, Chairman of the Parliamentary Standing Committee on Finance Veerappa Moily Sunday said if he quits over the stand-off between the top bank and the Centre, it will send a bad signal to global markets.
"If Patel decides to resign over its (RBI) differences with the central government, it will be a very sad and bad for the Indian economy.
It will also send a bad signal to global markets just as Raghuram Rajan's exit did," the former Union Minister told PTI here.
He said responding to a query on reports that there were demands from some quarters for Patel to step down as RBI governor in view of the stand-off.
Noting that RBI's credibility would be shaken if Patel resigns, Moily said the entire world economy looks up to any central bank of any country and the markets would also be affected.
His remarks come ahead of RBI's crucial board meeting Monday with Finance Ministry nominees and some independent directors expected to take on Patel and his team over several issues, though both sides are in favour of reaching a common ground.
Moily claimed that the nation used to be very proud of India's growing economy because its fundamentals were strong during the 10-year UPA rule unlike in the four-and-a-half years of NDA rule.
"When Arun Jaitley presented the first budget of the NDA, the economic survey report said the fundamentals of the economy were strong, that means it is a compliment to the Congress regime.
If the economic survey is presented today can they (NDA) say with confidence that the fundamentals of economy are strong? The answer is no," he contended.
"This only implies that the four-and-a-half years of NDA rule has destroyed and eroded the fundamentals of the country's economy. That is the big tragedy of the present government at the centre," he added.
To another query on reports that the government was planning to constitute panels to monitor functions of RBI, Moily said it would be a "very bad" idea.
"Having a managing committee over the regulator is a very bad idea and is unknown in world economy.. No country practises it.
RBI cannot be managed as a government department. It is an independent autonomous organisation which has been created by an act of Parliament," he said.
"Patel is willing to have discussions with the government. Even the previous RBI governor Raghuram Rajan was keen on it.
The finance ministry can call a meeting every month to discuss with RBI to sort out misunderstandings if any. They cannot be solved by orders and interferences," Moily suggested.
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Israel launches first airstrike on Lebanon since ceasefire, accusing Hezbollah of breaching truce
Beirut, Nov 28: The Israeli military on Thursday said its warplanes fired on southern Lebanon after detecting Hezbollah activity at a rocket storage facility, the first Israeli airstrike a day after a ceasefire between Israel and Hezbollah took hold.
There was no immediate word on casualties from Israel's aerial attack, which came hours after the Israeli military said it fired on people trying to return to certain areas in southern Lebanon. Israel said they were violating the ceasefire agreement, without providing details. Lebanon's state-run National News Agency said two people were wounded.
The back-to-back incidents stirred unease about the agreement, brokered by the United States and France, which includes an initial two-month ceasefire in which Hezbollah members are to withdraw north of the Litani River and Israeli forces are to return to their side of the border. The buffer zone would be patrolled by Lebanese troops and UN peacekeepers.
On Thursday, the second day of a ceasefire after more than a year of bloody conflict between Israel and Hezbollah, Lebanon's state news agency reported that Israeli fire targeted civilians in Markaba, close to the border, without providing further details. Israel said it fired artillery in three other locations near the border. There were no immediate reports of casualties.
An Associated Press reporter in northern Israel near the border heard Israeli drones buzzing overhead and the sound of artillery strikes from the Lebanese side.
The Israeli military said in a statement that “several suspects were identified arriving with vehicles to a number of areas in southern Lebanon, breaching the conditions of the ceasefire.” It said troops “opened fire toward them” and would “actively enforce violations of the ceasefire agreement.”
Israeli officials have said forces will be withdrawn gradually as it ensures that the agreement is being enforced. Israel has warned people not to return to areas where troops are deployed, and says it reserves the right to strike Hezbollah if it violates the terms of the truce.
A Lebanese military official said Lebanese troops would gradually deploy in the south as Israeli troops withdraw. The official spoke on condition of anonymity because they were not authorized to brief media.
The ceasefire agreement announced late Tuesday ended 14 months of conflict between Israel and Hezbollah that began a day after Hamas' Oct. 7, 2023 attack out of Gaza, when the Lebanese Hezbollah group began firing rockets, drones and missiles in solidarity.
Israel retaliated with airstrikes, and the conflict steadily intensified for nearly a year before boiling over into all-out war in mid-September. The war in Gaza is still raging with no end in sight.
More than 3,760 people were killed by Israeli fire in Lebanon during the conflict, many of them civilians, according to Lebanese health officials. The fighting killed more than 70 people in Israel — over half of them civilians — as well as dozens of Israeli soldiers fighting in southern Lebanon.
Some 1.2 million people were displaced in Lebanon, and thousands began streaming back to their homes on Wednesday despite warnings from the Lebanese military and the Israeli army to stay out of certain areas. Some 50,000 people were displaced on the Israeli side, but few have returned and the communities near the northern border are still largely deserted.
In Menara, an Israeli community on the border with views into Lebanon, around three quarters of homes are damaged, some with collapsed roofs and burnt-out interiors. A few residents could be seen gathering their belongings on Thursday before leaving again.
