Chennai: “The government is not just a stakeholder, but runs the economy and the country, and makes major policy decisions,” said Shakthikanta Das, the 25th governor of the Reserve Bank of India (RBI), acknowledging that supremacy of the present government in having a say on policy issues.
Meeting reporters yesterday also his first day at office, the successor to Urjit Patel promised to run the central bank in a professional manner, with an aim to put aside the skirmish between the two entities.
“I don’t know what is blocked and where the relationship is not good,” Das said at an interaction held at the Mint Street headquarters, yesterday.
“We have to have stakeholder consultations. Government is not just a stakeholder, but the government of the day runs the economy and the country, and makes major policy decisions. There has to be free, fair, and objective discussion between the Reserve Bank of India and the government. I would like to believe that all issues, however contentious, can be resolved through consultations,” he said.
“I will do everything that is possible to uphold the professionalism, core values, credibility and autonomy of Reserve Bank,” added the Governor.
Das is also to meet the heads of State-run banks on Thursday and other stakeholders subsequently, in a bid to resolve problems that the industry has been facing off-late.
“Consultations with stakeholders is very important. It adds value and depth to our understanding of issues. So, therefore, I propose to undertake consultations wherever necessary on a needbased manner,” he said.
On the liquidity issue that even the CII, among others, is pressing to be soved, Das said, ‘The issue of liquidity comes up from time to time…that will be one area that we will have to interact with stakeholders and get an internal feedback and get a view of these issues.’
Shakthikanta Das will head the central bank’s board meet to be conducted on Thursday and at the meet, it expected that another controversial issue pertaining to the role of independent directors in the executive decisions made by the RBI will be discussed, apart from others.
Das did not give much on the matter, but just said, “I would not like to go into what are the issues between the government. At the same time every institution should also adhere to the principle of accountability.”