Manmohan Singh on RBI row: 'Reserve Bank-Finance Ministry ties have hit a low'

Former prime minister Manmohan Singh on Wednesday targeted the rift between the Reserve Bank of India (RBI) and the Modi government, adding the relationship between the central bank and the Finance Ministry has hit a low.

: Former prime minister Manmohan Singh addresses a press conference, in Indore. PTI Photo

INDORE: Former prime minister Manmohan Singh on Wednesday targeted the rift between the Reserve Bank of India (RBI) and the Modi government, adding the relationship between the central bank and the Finance Ministry has hit a low. "The relationship between the RBI and Finance Ministry has hit a low," he said. Harmony and coordination between both was essential for the country, he added. "The RBI governor and finance minister have a delicate relationship. Both have to work together. Even though the job of running the country rests with the government, specific responsibility is given to the RBI governor by the RBI Act. There is a need to recognise inter dependence of the two entities and work in harmony," he said. "I am happy with the efforts being made to bring reconciliation. Both need to work in harmony with each other," he said. When asked if RBI's reserves can be used for the welfare of the public, Singh said: "This question has not rised for the first time. Also, in 2013-14 this matter was raised between the governmnet through the ministry of finance and the RBI. The decision was made that a committee should be appointed to give its advice on this complecated matter." "I am told that the RBI has been transferring most of the surplus reserves to the government since 2013-14. "This is not a static thing. Reserves can rise and they can fall. The need for reserves can increase or decrease also depending upon the risks our economy faces. These are complicated questions and the best way to resolve them is through an expert advice," Singh said, adding that he is confident this would be the path the Centre and the RBI would agree upon. Singh accused Modi of misusing the Prime Minister's post. "It does not befit the PM to abuse political opponents," he said, adding Modi was using "unparliamentary words" against the opposition. He also denied Modi's claim that the UPA government led by him was a "remote-controlled" one. "The success of my government was because the party and government were on one page. There was no difference of opinion," he said. (With inputs from PTI)