Chidambaram attacks Modi government, says Centre trying to capture RBI (Representative Image)
The unprecedented demonetisation drive announced by Narendra Modi-led BJP government has completed its two years on Thursday, November 8, 2018. Amid a full-blown Twitter war between the BJP and the Opposition parties on the second anniversary of demonetisation, senior Congress leader P Chidambaram gave another edge to the controversy.
Stressing on RBI's role in the demonetisation fiasco, the former finance minister accused the Modi government of trying to 'capture' the Reserve Bank of India (RBI) ahead of the Lok Sabha elections in 2019.
"The government wants to use RBI reserves to step up expenditure in an election year. The government doesn't know what the consequences will be if the RBI defies it or if the RBI Governor Urjit Patel resigns," Chidambaram said, adding that any such move would be "catastrophic".
Terming the demonetisation move an "ingeniously designed official money laundering scheme", the senior Congress leader said, "The government is planning to issue a direction under Section 7 of the RBI Act, 1934, directing the bank to transfer Rs 1 lakh crore to the Centre".
"In such a situation, the RBI Governor will have only two options in this matter — to act in line or resign. Therefore, one more crucial institution will fall from grace," Chidambaram claimed.
The former union minister also trained his gun at that 'Acche din' promises of Narendra Modi, saying "Acche Din lies in shambles. People will take a decision when given opportunity and the Karnataka by-polls were a testimony to the same".
Chidambaram's barb came ahead of the RBI board meeting on November 19, alleging that the government has packed the central bank's board with handpicked nominees and was making every attempt to push through its proposals at the crucial meet later in the month.
Earlier in the day several other opposition leaders took to Twitter and orchestrated an attack against the Modi government over the demonetisation move that resulted in the slowdown of the economy and rise in unemployment.
Take a look:
What Modi achieved with his demonetisation disaster for the farmers. Why are no celebrations planned on its second anniversary by this only PR and tamasha organising govt? #DemonetisationDisaster #Jumlas pic.twitter.com/Jtm4pj5j0m— Sitaram Yechury (@SitaramYechury) November 7, 2018
2 yrs after #DemonetisationDisaster, the country still hasn’t overcome the economic setback caused by hasty decisions of BJP govt. Implemented in the name of destroying black money, demonetization succeeded in destroying employment, markets, business, liquidity & economic growth.— N Chandrababu Naidu (@ncbn) November 8, 2018
On November 8, 2016, Prime Minister Narendra Modi had announced a ban on then in use Rs 1,000 and Rs 500 denominations with an immediate effect.