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Informist, Tuesday, Dec. 10, 2024

 

--RBI Das: Thought it appropriate to share thoughts before demitting office

--RBI Das: Have tried to adhere to principles I mentioned when I took charge

--RBI Das: Have followed consultative approach over last six years

--RBI Das: Want to place on record valuable inputs received from stakeholders

--RBI Das: On geopolitical uncertainty: Sure RBI will certainly be at its best

--RBI Das: Hope there will be national rollout of Unified Lending Interface

--RBI Das: CBDC has huge potential in coming years, it is future of currency

--RBI Das: Co-ordination between fin min, RBI in last 6 yrs has been at its best

--RBI Das: In my tenure, we have resolved issues between govt, RBI internally

--RBI Das: Formalisation of aspects of an institution adding strength to econ

--RBI Das: Don't think of issues as unfinished tasks but works in progress

--RBI Das: On life after RBI: No plan as of now, will think about it

--RBI Das: It is for you to rate me as RBI governor

--RBI Das: Our effort has always been to ensure taxpayer money isn't burdened

--RBI Das: Can confidently say RBI supervision today is much sharper than before

--RBI Das: Try to avoid imposing, prolonging business curbs on entities

--RBI Das: RBI is a continuing institution, there is always room for improvement

--RBI Das: RBI Das on growth, inflation: Bound by post-policy silent period

--RBI Das: Within RBI, MPC, we're convinced our actions were the best options

 

NEW DELHI - In his final media briefing as the governor of the Reserve Bank of India, Shaktikanta Das on Tuesday said one of the most important issues for the central bank now is to restore the balance between inflation and growth. "I think restoring the inflation-growth balance is the most important task ahead of the Reserve Bank, and I am sure that Team RBI under the leadership of the new governor will take it forward," Das told reporters in Mumbai.

 

Das' six-year governorship of the RBI ends on Tuesday, with Revenue Secretary Sanjay Malhotra set to take charge on Wednesday. The outgoing governor's comments come amid rising pressure on the central bank's Monetary Policy Committee to reduce interest rates, with GDP growth having slid to a seven-quarter low of 5.4% in Jul-Sept amid 6%-plus inflation.

 

While the RBI on Dec. 6 cut its GDP growth forecast for 2024-25 (Apr-Mar) by 60 basis points to 6.6%, Das Tuesday said that the Indian economy is "resilient and robust, with the capacity to deal with global spillovers very effectively".

 

"We are much better placed today than what it was a few years ago, we are much better placed to deal with all such challenges. And the inherent potential of the Indian economy to grow is very much there. And I always remain optimistic about the outlook for the Indian economy," he added.

 

While Das refused to comment on specifics of monetary policy, saying he was still in the silent-period after the MPC's meeting last week, he said the committee and the central bank are "convinced that what we have done was the best option available and was the best under the circumstances. Beyond that I cannot and I should not (say anything) because I am bound by the silent period".

 

Apart from the macroeconomic situation, Das said cybersecurity and technology were some of the important issues for the RBI moving forward. The bureaucrat-turned-central banker also highlighted the potential of the Central Bank Digital Currency--saying they were the future of currencies--and the proposed Unified Lending Interface, which he said would be a "true game-changer" and that he looked forward to its nationwide rollout.

 

LOOKING BACK

Earlier on Tuesday, Das posted several times on X, formerly Twitter, thanking Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, stakeholders, and RBI staff. He even recalled the "warmth, trust and confidence" of the late Arun Jaitley, who was Das' boss first in the finance ministry and in his early days at the RBI.

 

"I was fortunate to get this opportunity and I have tried to give my best to the institution, to its policies in the best interest of the economy," Das told reporters.

 

Expanding on the rapport between the RBI and the Indian government, which he is widely credited to have repaired after a tumultuous few years, Das said relations "have been at their best" in his tenure, with "excellent co-operation, excellent co-ordination" before, during, and after the coronavirus pandemic.

 

"Perspectives of finance ministry or the central bank can vary, differ at times. It happens world over. But in my tenure, I think we have been able to resolve all such issues through internal discussions," he said.

 

"I would like to state emphatically that when a governor comes, he looks at the wider economy. He definitely looks at from the Reserve Bank's perspective and from the point of view of what is the mandate given to Reserve Bank and how he is going to fulfil that mandate. But while fulfilling that mandate, I can say with confidence and certainty, in the past and present and in the future, the governors keep in mind the requirement of the wider economy also."

 

LIFE AFTER RBI

When asked about his plans for the future, Das said he had not made any plans.

 

"Let me first demit office and then I will think about it. Let me enjoy a few...there is no specific plan as of now. I will think about it."

 

Asked if there were any unresolved matters as he exited the RBI, Das said he did not like to think of such issues as unfinished tasks. "In the life of any institution, there will always be unfinished tasks... It is a continuing process. I don’t call them as unfinished tasks...but works in progress."

 

The 25th governor also refused to rate his performance as the central bank chief, telling reporters it is "for you to do, I can't reply".  End

 

Reported by Siddharth Upasani

Edited by Vandana Hingorani

 

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