Das takes charge at RBI, talks of consultations

MUMBAI: Government is not just a stakeholder... the government of the day runs the economy, runs the country and manages major policy decisions. SHAKTIKANTA DAS, RBI governor

Declaring that he would uphold the “autonomy, integrity and credibility” of the RBI, newly-appointed governor Shaktikanta Das said on Wednesday that the government is responsible for running the country, and that the central bank is also accountable.

Briefing reporters here after taking charge as the 25th governor of the Reserve Bank of India (RBI), Das said consultations with stakeholders has become fundamental to the central bank’s functioning in view of the complexity of modern day decision-making. He said that as part of this process, he would meet the heads of the Mumbai-based state-run banks on Thursday.

Meetings with public sector banks outside Mumbai would follow “after some days”, he said.

His predecessor, Urjit Patel, resigned on Monday following a drawn out public dispute with the government.

“The RBI is a great institution and I will try my best to uphold its autonomy, identity and values. The autonomy, integrity and credibility is very important for this great institution and it will be intact,” he assured.

Analysts said the move to open up a dialogue was positive.

“He is trying to give comfort to the banking industry against the backdrop of continued concerns on the financial stability front,” said Rupa Rege Nitsure, chief economist at L&T Financial Holdings.

Pushed for answers, Das refused to go into contentious issues.

“I do not like to go into whatever the issues or what are the issues between government which runs the country and the RBI, but every institution has to have its professional integrity, maintain its professional autonomy. At the same time, every institution also must adhere to the principles of accountability,” he said.