Subramanian Swamy has written to Prime Minister Narendra Modi, accusing RBI Governor Raghuram Rajan of wilfully wrecking the economy.
Highlights
- Raghuram Rajan's recent statements have made government uncomfortable
- BJP has not announced its stand on Subramanian Swamy's letter
- Voices like Swamy's help when government doesn't want a spat: Sources
BJP lawmaker Subramanian Swamy's call to remove Reserve Bank Governor Raghuram Rajan has the tacit support of the government, sources have indicated.
The lawmaker has
written to Prime Minister Narendra Modi, accusing the RBI Governor of wilfully wrecking the economy and alleging that he is "not fully Indian" since he keeps renewing his US Green Card.
This was the second time Mr Swamy targeted the RBI Governor within a fortnight. Government sources indicated that his letter reflects the disquiet over RBI Governor's actions and public statements during the two years of NDA government.
"The RBI website says governors are traditionally conservative and publicly shy," a senior Union minister said. But Mr Rajan's statements -- "creating a parallel with Hitler's regime, speaking during the intolerance debate and using the 'one-eyed among the blind' analogy for the Indian economy" - has created discomfort at regular intervals for the government.
Mr Swamy's letter, sources say, is signal that if the government cannot get into a public spat over these statements, voices like Mr Swamy's can be useful. This, sources said, follows a pattern seen recently in the party's parliament strategy.
"When the Congress was in the well of the House over Uttarakhand, Mr Swamy, a nominated member, raised the AgustaWestland payoffs issue and that made the Congress retreat," said another minister.
Dr Rajan was appointed by the UPA and his term ends in September. With Mr Swamy's strong letter to PM Modi, there are indications that a signal is being sent that his chances of getting a second term are dim.
Instances of differences between the government and RBI Governors over policy issues is not new. The RBI website shows that in 1937 and 1957, central bankers resigned over differences with government.
But this time, the differences are not restricted to policy or domain. While off camera, the BJP's top leadership advised that Mr Swamy's letter be ignored, there has been no formal clarification on the party's stand.