People in rural India have been hit hard with the rise in inflation. Thus, those who have money are trying to pare down costly debt, invest in business, and spending less on discretionary goods.
The RBI governor in an interview cited the example of the recent crypto market crash and said that they have been cautioning investors against crypto for months.
Jay Narayan Vyas, a former member of Narendra Modi's cabinet when he was the Chief Minister of Gujarat, sent out a tweet on Wednesday morning referring to the new Governors educational qualifications saying: "pray he (Das) doesn't make RBI also a history".
As economic affairs secretary from 2015 to 2017, Das has worked closely with the central bank. At present, he is also the government’s representative at the Group of 20 summits.
The 30-scrip Sensitive Index (Sensex) of BSE on Wednesday opened on a positive note during the morning session of the trade at 35,277.84 points and touched a high of 35,329.37 points.
Gandhi, addressing a press conference in Delhi after the assembly election results, also said that "PM Modi is unable to take the pressure coming from the Opposition."
The RBI's crucial board meeting on Monday is expected to take up the liquidity crisis that has triggered a tiff between the government and the central bank.
The meetings came amid a face-off between the central bank and the finance ministry over issues ranging from appropriate size of reserves that RBI must maintain to ease of lending norms to step up growth in an election year.
Chidambaram said that the governments he was a part of in the past had never used Section 7 of the RBI Act of 1934, under which a direct order can be issued by the government to the central bank to carry out its wishes in "public interest".
Section 7 of the RBI Act empowers the government to issue directions necessary for public interest to the RBI from time to time after consultation with the RBI governor.