Shaktikanta Das, the new Governor of the Reserve Bank of India, affirmed on Wednesday he would try and protect core values of the central bank but at the same time called for a “frank” discussion with the government saying “the government is not just a stakeholder but manages the country’s major economic policy decisions”.
Das said he was not aware whether relations between the government and the RBI were good or not even as he stressed on a frank discussion.
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He parried most of the pointed questions in his first interaction with reporters, saying he needs time to settle down. Only intra-day development he divulged was a cup of tea with hawkish Deputy Governor Viral Acharya who he said was very much with the RBI. Acharya had been brought into the central bank by former RBI Governor Urjit Patel, whose sudden resignation last week necessitated Das’s appointment.
“I will uphold professionalism, values, credibility and autonomy of the institution….every institution must adhere to the principle of accountability and that the government is just not a stakeholder but manages policy and the country,” said Shaktikanta Das.
READ | P Chidambaram, Subramanian Swamy criticise appointment of Shaktikanta Das as RBI Governor
Das faces his first challenge at the coming board meeting on Friday because according to Bloomberg report the government appointees are likely to demand setting up of a committee to have an oversight of foreign exchange management and fiscal stability.
The new RBI Governor said he had called a meeting of the heads of state-run banks on Friday and would follow it up with other bankers. Drawing from his past interactions and engagement with RBI officials, he said central bankers “possess inherent core competence and professionalism” to deal with all technical issues on monetary and currency aspects.
Das has worked in the finance ministry for over 10 years in his long civil service career spanning four decades before retiring in May this year as finance secretary after which he was appointed a member of the 15th Finance Commission chaired by N K Singh and the country’s Sherpa to the G-20.
There have been many precedents of career bureaucrats appointed as RBI governors in the past, but Das is the first such official to occupy the Mint Road corner office in the past five years and the first one after the retirement. Earlier bureaucrats, especially D Subbarao and YV Reddy, are widely respected for having fiercely protected RBI’s interests in the face of demanding governments.
