Economy

Shaktikanta Das assumes charge as new RBI Governor

Shaktikanta Das assumes charge as new RBI Governor

Patel, who had said he was resigning for personal reasons, and his predecessor Raghuram Rajan are economists.

Das, 63, a veteran Tamil Nadu cadre officer, will first have to work on normalizing the relationship between the central bank and the government that had turned frosty in the past few months as the two differed on many issue. But with the RBI departments and deputy governors strongly defending the existing stance of the central bank vis-a vis liquidity and the need for PCA norms, Das' move towards a reprieve for banks and NBFCs will be keenly watched. "We've not politically interfered in it (in the functioning of RBI)", he said.

Given the current structure, the central board plays advisory role but there is growing clamour to make it operational and have greater participation in key decisions of the central bank.

All offices of RBI have been told to share data by January 2 for the limited review.

Addressing issues concerning the banking sector will be one of the immediate priorities of the newly-appointed Governor of the Reserve Bank of India, Shaktikanta Das, who has called for a meeting with the chief executives of Mumbai-based public sector banks on Thursday.

There have been rumours about Acharya, whose speech on October 22 had brought the government-RBI stand-off out in open, putting in his papers.

If RBI wants to be fully autonomous, then hold it responsible for the ills of the economy and not the finance ministry, he said. He has been extremely professional, has worked under various governments and has excelled himself.

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"The Supreme Court can be an autonomous body".

He said, stakeholder consultations are needed as it is the government that runs the economy and formulates policies.

The PCA framework kicks in when banks breach any of the three key regulatory trigger points - namely capital to risk weighted assets ratio, net non-performing assets (NPA) and return on assets (RoA).

He said long back Maharashtra government had given a loan to Vijay Mallya through the state PSU Sicom, and he used to repay the interest diligently for 40 years.

"If a person who was repaying the debt for 40 years, and due to some issues he is not able to meet his debt obligations later, can you declare him a willful defaulter?"

"When someone is serious then we put him/her in an ICU, but our banking system first puts a sick company in the ICU and then ensures that it dies", he quipped.