NEW DELHI: Speculation was rife on Sept.19 about the impending departure of S. Venkitaramanan from the post of Governor, Reserve Bank of India, following the critical remarks made by the Chairman of the Joint Parliamentary Committee Ram Niwas Mirdha about the role of the central bank in preventing the securities scam, While sources in the RBI in the Capital as well as in Bombay said that there were expectations that Dr.C.Rangarajan would be taking over from
Venkitaramanan very soon, highly placed sources in the Finance Ministry said there was no basis for such speculation,
Speculation about the impending resignation of Venkitaramanan gained ground following Mirdha’s strong remarks criticizing the RBI for its alleged failure to contain the scam.
Media reports claimed that — Venkitaramanan had opposed “drastic action” against the now liquidated Bank of Karad after the RBI’s Department of Banking Operations and Department had recommended in March this year that irregularities in the bank transactions be investigated in the CBI.
Mirdha had told journalists said RBI officials had colluded with brokers and had been unable to control the activities of banks.
Venkitaramanan is due to retire in December.
There was a feeling that the Finance Minister would ask him to go on leave prior to retirement and allow him to retire gracefully so as to convey an impression that Dr.Singh had not succumbed to pressure.
Article extracted from this publication >> October 2, 1992
