Boosting liquidity, restoring credibility, autonomy of RBI a major task for new Guv
RBI not dependent on particular individual: Niti
The appointment of former bureaucrat Shaktikanta Das as the new RBI Governor comes as a huge sentiment booster to the industry and expressed confidence that he will take urgent steps to address the liquidity squeeze in economy, according to experts.
Das on Tuesday was appointed as the new governor of the RBI, a day after his predecessor Urjit Patel's resignation.
"The announcement enables a smooth transition process and ensures that stability will be maintained. The government, in selecting an experienced economic expert, has avoided disruption and imparted huge confidence to investors and industry," CII President Rakesh Bharti Mittal said.
He said the industry was confident that the liquidity squeeze in the banking and non-banking financial sector, which is spilling over to the various segments of industry would be taken up with all urgency by Das and there would be seamless flow of credit to industry and trade, especially to the MSMEs.
"The wide-ranging experience in handling the economic matters will certainly help Das in dealing with the critical issues facing the economy. We need to bring down the real interest rates, improve liquidity and promote growth and employment. Improving credit flow to the real economy, especially in sectors like MSME and housing is critical at this juncture," Ficci President Rashesh Shah said.
Former RBI head D Subbaro said the successor will have a task of restoring credibility and autonomy of the institution. "They (government) will also perhaps examine in what way they will have to push their agenda. Push is a wrong word. In what way they can push their agenda, what limit they can push it, at what point of time they have to withdraw.
SBI Chairman Rajnish Kumar said, "The appointment of Das will ensure continuity in monetary policy making and regulatory measures even as the global economy is passing through uncertain times. The financial markets will also significantly benefit from the appointment of newly appointed Governor given his rich prior experience in fiscal policies and trade. NEW DELHI: A day after Urjit Patel resigned as RBI Governor, Niti Aayog Vice Chairman Rajiv Kumar on Tuesday said the central bank's institutional capabilities are 'very strong' and it will do whatever is required for the markets and economy. Kumar further said although Patel has done an amazing work in the last two years as the RBI Governor, the functioning of the central bank is not dependent on any particular individual. "RBI's institutional capabilities are very strong and they will do whatever is required for the markets and economy.
"The fact is that RBI itself is such a professional institution, and such a long-standing institution that you know, the business will continue," Kumar said on the sidelines of 'Inclusive Finance India Summit' here. The Niti Aayog vice chairman also assured that the government will do whatever is required to continue its business as usual.