In his last speech, central bank governor Shaktikanta Das stated that the Reserve Bank of India and the Finance Ministry had been on the “best” terms with “excellent” coordination and cooperation. He also denied rumours of friction between the two following the recent downturn in growth.
On Friday, 6th December, in his final news conference as governor, Shaktikanta Das stated that the North Block and India’s central bank had worked together at their best. “We have had excellent coordination and cooperation,” he said, and the “same level of coordination continues as we speak now.”
Das continued, “I believe in my tenure, we have been able to settle such things.” He clarified that the central bank and the Finance Ministry sometimes have different viewpoints. When making decisions, governors consider the demands of the overall economy, and “eventually, it is a judgement call every time,” he stated.
Das has left his position as the RBI’s 25th governor, having served for six years. Earlier in the day, he thanked Prime Minister Narendra Modi for his leadership during his term.
“Heartfelt thanks to Hon’ble FM @nsitharaman for her constant support and backing,” he said on X, acknowledging the North Block’s support.
As inflation stayed beyond the Reserve Bank’s goal range and India’s economic growth fell to an almost two-year low, speculation was rampant.
During the most recent monetary policy meeting, Governor Das reduced the GDP growth estimate for the entire fiscal year from the prior 7.2% estimate to 6.6%. According to Das, the final quarter estimate was lowered from 7.4% to 7.2%, and the third quarter growth is anticipated to be 6.8%, down from 7.4%.
After Das stepped down on Tuesday, senior official Sanjay Malhotra became the RBI’s next governor. Malhotra is the revenue secretary in the Ministry of Finance and a 1990-batch Indian Administrative Service officer from the Rajasthan cadre.
Malhotra was the Department of Financial Services secretary and served there for nine months, starting February 2022, before taking charge as the revenue secretary in November 2022.
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