Will maintain the credibility and autonomy of the RBI during my tenure : Shaktikanta Das
Mumbai : Shaktikanta Das the new RBI Governor, currently serving as a 25th governor of RBI, after his appointment in an press conference Das stated that “During his tenure, he will try to maintain the credibility and autonomy of “great organization”.
“I will try and maintain the professionalism, fundamental value, credibility and autonomy of this institute, it is an honor and a great opportunity to serve the RBI. I have to work with everyone and work towards the benefit of the Indian economy. Will do my best” Shaktikanta Das said in press conference.
It will be considered as the first public statement given by the Governor of Reserve Bank of India as he took over as Governor on Tuesday.
Appointment of ShaktiKant Das, approved by the Appointments Committee of the Cabinet, the move one day after Urjit Patel citing “personal reasons” one day after resigning from the post. “I have called a meeting with CEO and MD of Public Sector Banks tomorrow morning (today). Banking is an important segment in our economy and it is facing many challenges that need to be tackled. This is a banking sector on which Das distracted questions on the differences with the government, which on Monday became the reason for his predecessor’s resignation.
Das said, “I will not go into issues between the RBI and the government, but every institute has to maintain its autonomy and also follow the liability.” “I do not know the government-RBI relationship has been blocked, but I think that stakeholder consultation is going on.”
The RBI central board meeting will take place on December 14 as scheduled, he said.
The 25th Governor of RBI, who is an retired Secretary of the Department of Economic Affairs, had served in various capacities in the Finance Ministry, including as Secretary in the Revenue department and as a key official in the Budget division.
Das assumed charge as RBI governor on 12 December 2018. Reactions by markets to Das’ appointment was positive, with BSE SENSEX gaining 629 points and NIFTY 50 increasing by 188 points.
His biggest challenge would be to handle the pressure from the government on issues such as reconstruction of the loan, promoting liquidity and adhesing on its strict default criteria, to address bad credit in the books of banks, where the Center has favored a more liberal approach.
Das’ appointment as RBI governor received mostly positive responses, with DBS Bank’s head of markets for India at Singapore, Ashish Vaidya, saying that previous governors of the RBI with an IAS background, such as Y. Venugopal Reddy and Duvvuri Subbarao had been successful and that Das’ “cordial relations with the government would likely help policy negotiations.
