Chidambaram slams Centre for invoking never-used clause of RBI Act

Slamming the government for using for the first time a clause of the RBI Act, former Union finance minister P Chidambaram on Wednesday alleged that the NDA dispensation is "hiding facts" about the economy and is "desperate".

In a series of tweets, the senior Congress leader said the governments he was a part of in the past had never used Section 7 of the Reserve Bank of India Act, under which a direct order can be issued by the government to the central bank to carry out its wishes in "public interest".

"We did not invoke Section 7 in 1991 or 1997 or 2008 or 2013. What is the need to invoke the provision now? It shows that government is hiding facts about the economy and is desperate (sic)," he said.

Referring to a statement issued by the government, which said extensive consultations on several issues take place between it and the RBI from time to time, Chidambaram asked if it contained the truth alone, why was it necessary to issue the statement?
Chidambaram also said: "If, as reported, Government has invoked Section 7 of the RBI Act and issued unprecedented 'directions' to the RBI, I am afraid there will be more bad news today."