 "RBI's reputation lies in tatters, autonomy undermined, says Congress")
Supporting the letter written by the Reserve Bank of India (RBI) employees to Governor Urjit Patel protesting against operational "mismanagement" post demonetisation, the Congress on Sunday said the central bank's reputation lies in tatters today.
"RBI was told only on November 7. The currency management and the management of the capital is responsibility of the reserve bank under law. The reserve bank could have told the government it cannot be done... RBI's reputation and respect today lies in tatters. It has been battered very badly," Congress leader Anand Sharma said.
Calling the step of demonetisation 'illegal', Sharma said the autonomy of the central bank has been undermined due to the invalidation of the Indian currency.
"The RBI's autonomy has been severely undermined by the invalidation of the Indian currency. What has happened is illegal. It is the violation of the RBI act because neither the RBI has the powers to demonetise nor the Government of India. Only the Parliament can extinguish the value of the currency," he said.
In a strongly worded letter addressed to Reserve Bank of India (RBI) Governor Urjit Patel, the United Forum of Reserve Bank Officers and employees have alleged that post the government's demonetisation move, the image of the central bank has been dented beyond repair.
"We request the Governor of the RBI, its highest functionary and protector of its autonomy and prestige, to do the needful urgently to do away with this unwarranted interference from the Finance Ministry and assure the staff accordingly as the staff feels humiliated," the letter added.
Various employee unions of the central bank have objected to the government "impinging on RBI autonomy" and have written to Patel to take action against the "unwarranted interference".