Centre does not know how to manage institutions like RBI, CBI: Amit Mitra

Terming the RBI-government rift as a ''symptom of a disease'', West Bengal Finance Minister Amit Mitra Friday said the Deputy Governor's concern on autonomy shows RBI is imploding from inside and the Centre does not know how to manage institutions like the RBI and the CBI. 

The development surrounding RBI and CBI is a reflection of poor governance on the part of NDA government, Mitra said at a press conference in Delhi.

He said no such incident of conflicts in the two institutions were witnessed during the previous governments.

"This government does not know how to manage institutions. They have to learn... This is only a symptom of a disease," he said while commenting on the ongoing rift between RBI and the central government.

RBI and the Centre have not been on the same page with regard to certain key issues like the level of the central bank's reserves, lending to MSMEs, and liquidity of NBFCs. However, in a board meeting on November 19, RBI has agreed to some of the proposals of the government. 

In a public speech last month, RBI Deputy Governor Viral Acharya had raised issues regarding the independence of the central bank. He had said that undermining the central bank's independence could be "potentially catastrophic".

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Referring to Acharya's speech, Mitra said it shows "it (RBI) is imploding from inside".

Mitra also said it was unfortunate that there are two camps within the CBI, which is the premier investigative agency in the country.

The infighting between CBI Director Alok Verma and Special Director Rakesh Asthana, the second in command at CBI, has reached the Supreme Court, which is currently looking into the matter.

Earlier this month, TMC-ruled West Bengal withdrew its "general consent" to the CBI to conduct raids and investigations in the state. Following this, the agency would now need permission from the state government to carry out the investigation in the state, except those ordered by courts and against central government officials. 

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