New RBI guv says will uphold central bank’s autonomy

Shiv Kumar
Tribune News Service
Mumbai, December 12

The newly appointed RBI Governor Shaktikanta Das, who took office on Wednesday, said he would try to mend relationship with the government.

Speaking to the media Das, who was the former economic affairs secretary, said the central bank should have consultations with everyone, including the government. “The government is not just a stakeholder, it runs the economy and the country,” he told reporters.

Das, who took over after the sudden resignation of his predecessor Urjit Patel, said he would try to uphold autonomy and core values of the central bank. “I will try to uphold autonomy and credibility of the RBI as an institution. Will take time for me to settle down and look at all issues,” he said.

He further added that the RBI will hold the meeting of its board as planned on December 14.

Das scotched rumours about Deputy Governor Viral Acharya’s resignation. “I just had tea with the RBI Deputy Governor. He is still with the RBI,” he said.

The new governor said the banking sector faced a lot of challenges several more measures needed to be taken. He said a meeting with a number of bank chiefs were planned on Thursday to immediately address the needs of the banking sector. “I have convened a meeting with CEOs and MDs of public sector banks on Thursday morning. Banking is an important segment in our economy. It is facing several challenges that need to be dealt with. It is the banking sector on which I would like to focus on immediately,” he said.

Das noted that the inflation outlook looked benign at this stage. “The inflation target continues to be very important. It is really heartening that it has been very good but we have to ensure stability. The issue of liquidity is also important and I will work on these issues too. The maintenance of the growth trajectory of the Indian economy is extremely important,” he added.