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On demonetisation anniversary, Chidambaram attacks Modi government; says Centre trying to capture RBI

News Nation Bureau | Edited By : Nabanita Chakorborty | Updated on: 09 Nov 2018, 12:16:05 AM
Chidambaram attacks Modi government, says Centre trying to capture RBI (Representative Image)

Chidambaram attacks Modi government, says Centre trying to capture RBI (Representative Image)

New Delhi:

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".

Read | Two years on, demonetisation debate continues relentlessly

"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.

Read | Demonetisation 2nd anniversary: Opposition considers 'dark day' as 'a deep-inflicted wound' on Indian economy

Take a look:

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.

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First Published : 08 Nov 2018, 04:30:06 PM