Former finance minister P Chidambaram has claimed that the Narendra Modi government wants Reserve Bank India governor Urjir Patel to go, which will be a “repeat of the Raghuram Rajan story.” Chidambaram’s comment has come amid the conflict between the government and the central bank over regulations and reserves. The government wants the RBI to go easy on restrictions on weak banks, while the regulator wants to continue with its policies.
The Senior Congress leader, in a tweet, on Saturday said, “Swadeshi Jagran Manch wants Dr Urjit Patel out. That means the Modi government wants him to go. It is a repeat of the Raghuram Rajan story.” The fight between the government and the RBI came to light when some media reports claimed that the government has invoked its special powers to issue consultations on several issues. The government was said to have invoked Section 7 of the RBI Act.