Millennium Post

Country pushed into greater risk: Mitra

Country pushed into greater risk: Mitra

Kolkata: State Finance and Industry minister Amit Mitra on Tuesday expressed his apprehension that the autonomy of the Reserve Bank of India (RBI) is being compromised with the country's central bank transferring Rs 1.76 lakh crore to the Centre.

He expressed his concern that the RBI is dispensing its 'Risk Element Fund' by disbursing such an enormous loan to the Narendra Modi government.

"The huge loan that is being transferred to the government is unprecedented. The RBI has a fund reserved for mitigating risk. We are deeply concerned that the central bank is compromising with it in the process of allocating this loan," said Mitra, in reply to a query from Trinamool Congress MLA Jyotirmoy Kar on whether the RBI's huge loan transfer can have an effect on the state.

Mitra asserted that this is the first time the country is being pushed into a 'greater risk' with such an action. "Rupee depreciation is taking place; fears have been expressed over recession hitting America again. If there is an extreme financial emergency and there is dearth of risk funds then how should we meet the crisis? There will be impact on all the states and Bengal will not be an exception," Mitra maintained.

He said that he has already spoken with Chief Minister Mamata Banerjee regarding the issue and the latter has expressed her concern over the same.

Mitra also pointed out that two former RBI Governors have already spoken against the decision of the RBI. It should be noted that only last month, RBI Deputy Governor Viral Acharya, who had batted for the central bank's independence, resigned six months before the scheduled end of his term.

"I feel that we all need to come together and be vocal against the move. Our MPs will raise the issue in Parliament," he added.

It may be mentioned that Chief Minister Mamata Banerjee has said on multiple occasions that the dignity of the RBI has diminished and called for maintaining its sanctity.

Supporting the concern expressed by Mitra at the state Assembly, Left Front leader Sujan Chakraborty said that the RBI's autonomy is being taken away. "If the state takes any initiative to protest against the decision and seeks our support then we may consider it," he added.

Team MP

Team MP

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