RBI’s reputation lies in tatters today: Congress

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Supporting the letter written by the Reserve of (RBI) employees to Governor Urjit Patel protesting against operational “mismanagement” post demonetisation, the on Sunday said the Central Bank’s reputation lies in tatters due today.

“RBI was told only on November 7. The currency management and the management of the capital is responsibility of the reserve under law. The Reserve could have told the government it cannot be done…RBI’s reputation and respect today lies in tatters. It has been battered very badly,” leader Anand Sharma told ANI.

Calling the step of ‘illegal’, Sharma said the autonomy of the Central 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 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 of (RBI) Governor Urjit Patel, the United Forum of Reserve Officers and employees have alleged that post the government’s move, the image of the Central 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 have objected to the government “impinging on RBI autonomy” and have written to Patel to take action against the “unwarranted interference