RBI case: Chidambaram says – Desperate BJP is hiding the facts related to the economy
After one-by-one tweet, he said that if there are reports like that the government has used Section 7 of the Reserve Bank and given the unexpected instructions to the Reserve Bank, I am afraid that they will not get to hear bad news anywhere else. . “He said,” We have not used Section seven in 1991 or 1997 or 2008 or 2013. What is the justification to implement it now? This shows that the government is concealing facts and is in frustration. ”
Sources said that the government mentioned section seven (1) on at least three different issues. However, he clarified that the government has not taken any action under this special section.
Section seven of the Reserve Bank Act provides this privilege to the Central Government that it can direct the governor directly, given the public interest in case of disagreement with the central bank. The Government disagrees with the Reserve Bank on issues relating to Instant Corrective Action (PCA) Framework to Cash Management in Banks.