HDD accuses Modi govt of 'destabilising' RBI

Bengaluru: Former Prime Minister H D Deve Gowda on Saturday accused the Narendra Modi-led government at the Centre of ‘destabilising’ the Reserve Bank, by ‘attacking’ its autonomy and ‘loosening’ its system.

The JD(S) chief’s comments in the backdrop of the Yes Bank crisis.

“Vajpayee was Prime Minister for six years, Manmohan Singh for ten years, this is the sixth year for Modi. During his (Modi’s) period Reserve Bank has become like a department of Finance Ministry. It had statutory provisions, autonomy (in the past)…” Gowda said.

Speaking to reporters in Hubballi, he said, “Under Modis leadership RBI was destabilised, its autonomy was attacked.

“Impartial and honest advice of financial advisers were neglected from being implemented. Reserve Bank is the controlling authority to all the banks and the system there was loosened,” he added.

Cash-starved Yes Bank was placed under a moratorium, with RBI capping deposit withdrawals at the bank at Rs 50,000 per account for a month and superseding its board.