Govt Bent on Weakening RBI, Says AIBEA on Urjit Patel's Resignation

Although the All India Bank Employees' Association (AIBEA) had earlier demanded Reserve Bank of India Governor Urjit Patel's resignation, his calling it quits on Monday has left the banking body shocked and disturbed and it has termed it a "dangerous trend".

"The resignation of RBI Governor Urjit Patel is quite shocking and disturbing. The reasons for his resignation are obvious and signals a dangerous trend that institutions like RBI are no longer independent," AIBEA General Secretary C.H. Venkatachalam said.

Venkatachalam said at a time when there was a need for a more stronger and independent RBI, this vital institution is being intimidated by the central government.

The government is bent on weakening the RBI and making it pliable to meet its own political needs, he said.

When cited AIBEA's earlier demand that Patel should quit, Venkatachalam told IANS: "We had demanded his resignation over inaction on Nirav Modi issue. This is different. He is being eased out. It is an attempt to weaken the RBI."

In February, Venkatachalam demanded Patel's resignation owning up moral responsibility for the massive $1.8 billion Punjab National Bank scam/fraud allegedly committed by the diamond retailer.

"The continued silence of the RBI Governor with regard to the scam/fraud in PNB is surprising and astounding. It indicates the deep involvement and failure of RBI in non-monitoring the Nostro account of PNB," Venkatachalam had said then.

In April, the AIBEA had again demanded Patel's resignation, charging that the central bank was grossly negligent on several issues, including the cashless ATMs across the country.

In a statement at the time, Venkatachalam had said: "RBI has increasingly become irrelevant because they are becoming an appendage of the government, not enforcing their independent powers.