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Congress slams Centre over Rs 3.6 lakh cr RBI loan

Party spokesperson Manish Tewari warns that such a move would have "profound" implications on the macro-economic stability of India

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Manish Tewari
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The main Opposition, Congress, on Tuesday accused the Central government of siphoning off Rs 3.6 lakh crore from the Reserve Bank of India (RBI) reserves to dole out "freebies" ahead of the 2019 general election.

Party spokesperson Manish Tewari, at a press conference in New Delhi, warned that such a move would have "profound" implications on the macro-economic stability of India. "If this were to fructify, this would tantamount to the great Indian robbery," the former Union minister said. Tewari said the government must learn from Argentina, where the transfer of $6.6 billion from the central bank to the treasury sparked off the worst constitutional crisis. Argentina is before the IMF for a $50-billion bailout, he said.

Congress President Rahul Gandhi also on Tuesday urged the RBI Governor Urjit Patel to "stand up to" Prime Minister Narendra Modi to "protect the nation".

The RBI has not yet accepted the government proposal to shell out Rs 3.6 lakh crore. Tewari asserted that the Congress would resist all attempts to undermine the economic sovereignty of India and this "adventurism" would not be allowed.

"The facts which are emerging in the public space, the government wants the RBI to part with Rs 3.6 lakh crore out of Rs 9.59 lakh crore, which constitutes the cash reserve of the RBI...," he alleged.

He said this unprecedented move is going to have profound implications on the macro-economic stability of India as this is one of the fundamentals of the Indian economy that the RBI has enough liquidity available in order to meet any contingency.

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