Prime Minister Narendra Modi had referred to former Reserve Bank of India (RBI) Governor Urjit Patel as a “snake who sits over a hoard of money”, revealed former Finance Secretary Subhash Chandra Garg in his upcoming ebook titled ‘We Also Make Policy’. Garg, in his ebook set to be launched in October by writer HarperCollins, revealed that PM Modi’s comment got here throughout an financial assessment assembly in 2018.
Excerpts from Garg’s ebook, revealed by the Indian Express, reveal the tense relationship between the federal government and the RBI on the time. The Prime Minister noticed no resolution after listening to Patel and the shows and discussions with authorities officers together with then Finance Minister Arun Jaitley, Garg mentioned. Patel had provided some suggestions to the federal government however nothing to the RBI, moreover what they have been already doing.
Garg wrote that at that time the PM misplaced his cool and took on Patel. “I saw him in such an angry mood for the first time. He compared Urjit Patel to the snake who sits over a hoard of money, for being unreceptive to putting RBI’s accumulated reserves to any use,” Garg wrote.
PM Modi then urged the governor to convene a gathering of the board and discover options for the problems in session with FM Jaitley and the finance crew, he wrote.
Garg added within the ebook that the tensions between the federal government and Urjit Patel started in February 2018 when the previous RBI Governor launched a stringent framework for dealing with non-performing loans within the banking sector, finally resulting in his resignation over coverage disagreements.
In the assembly with the PM, Patel’s evaluation was extra alarmist than the prevailing financial scenario. Some of the strategies included scrapping of long-term capital features (LTCG) tax, huge scaling-up of disinvestment targets, and extra.
Patel had later in March 2018 delivered a speech in Gandhinagar questioning the federal government’s lack of ability to shed regulatory authority over nationalised banks and leaving RBI with insufficient regulatory authority over public sector banks in comparison with non-public sector banks.
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