At The End of The Day, It is Govt Which Runs Economy, Says New RBI Governor

Mumbai:

The new Reserve Bank of India (RBI) governor Shaktikanta Das in his first press conference made it clear that he will take every stakeholder, including the government, along in a consultative manner.

The effort on the part of ex-bureaucrat at being “politically aloof” was clear.

“I don’t want to discuss my personal opinion on political issues,” Das replied to a question during the conference.

The exit of former governor, Urjit Patel, was also brought up during Das’s maiden press conference as RBI governor. According to reports, the Centre was not particularly pleased at the former governor denying transfer of reserved cash.

Das, on the other hand, displayed his years of experience as a government officer while addressing the public rift between the Centre and the RBI saying, “all contentious issues can be resolved with discussions.” The statement comes at a time when experts and former governors have come out all guns blazing against the Centre for its perceived interference in the functioning of the RBI.

The former bureaucrat, who took over the reins, also said he will take measures which the economy requires in a timely manner and as the first step, will meet the heads of public sector banks.

Addressing media hours after taking over as the 25th Governor of RBI, the former Union finance secretary, who was the pointsman for the government during the demonetisation in November 2016, described the bank as a "great institution".

"I will uphold the autonomy, integrity and credibility of RBI as an institution. I will ensure that it is intact," he said. "The RBI is a great institution, it has a long and rich legacy," he added.

The new governor was also mindful of reinstating the Centre’s importance. “At the end of the day, it is the government which runs the economy,” he said.

He was the Centre’s face during demonetisation and held press conferences almost on a daily basis addressing public issues.

An IAS officer with a masters degree from St Stephen's College, New Delhi, Das served as the Joint Secretary, Ministry of Finance, Department of Expenditure, Government of India; Special Commissioner and Commissioner of Revenue Administration, Government of Tamil Nadu; Secretary, Industries Department in Government of Tamil Nadu and various other distinguished services.

It is interesting to note that demonetisation happens to be the common link between the outgoing and new governors of RBI. Urjit Patel, who completed two years at the helm, had faced several storms in the early days.

It began with demonetisation, announced two months after he took charge. The governor had to face the ire of citizens, economists and industry experts who did not agree with the move or its implementation.