Manmohan Singh Asks Finance Committee Members To Show Restraint With Urjit Patel

NEW DELHI: Former Prime Minister Manmohan Singh displayed skills of a seasoned economist and wise statesman when he urged fellow members of the Parliament Standing Committee on Finance, including Congress colleagues, to show restraint and sensitivity while asking RBI Governor Urjit Patel delicate questions. Patel had appeared before the committee on Tuesday to clarify on issues related to demonetisation.

According to an MP, Singh, a former governor of RBI and finance minister, said a firm ‘no’ when some Congress members of the panel, particularly Digvijaya Singh, asked Patel whether he feared a “run on the banks” if RBI lifts the ceiling on withdrawal of cash from ATMs and banks.

“No, you don’t have to answer that question,” Singh is learnt to have told the RBI governor as soon as the sensitive question was put to the RBI governor. Patel, of course, was quick to skirt the delicate question by making use of Singh’s preventive intervention. Incidentally,

The House Committee meetings took place on a day when Congress workers gheraoed RBI offices across states to protest against the post-demonetisation woes. The Congress leadership, while targeting Modi regime, has also been questioning the role of RBI in the demonetisation episode.

Singh also played a significant role in making the meeting less stormy for the RBI chief. Perhaps aware of the surcharged political fight over note recall and the reports about  the planned ‘grilling’ of Patel at the committee, Singh told members ahead of the RBI governor’s and his three deputies appearance, to ensure “the prestige of the institution is respected” during committee interactions. As per media reports, when Patel applied for an Indian passport, before taking up the offer of RBI deputy governor in 2013, his recommendation letter addressed to the home ministry was written by Singh.

In a brief but forceful intervention in the Rajya Sabha last November, days after note recall, Singh had lashed out at PM Modi by saying it amounted to “organised loot and legalised plunder.” On Tuesday, Singh’s interventions made some members think he was signalling not to make RBI brass the direct target of the political battles inside and outside Parliament. However, after the meeting some MPs expressed anger with Patel’s conduct, saying he did not answer their questions, especially on how much old currency had returned to RBI post-note recall.