After deliberating on the contentious issue of Reserve Bank of India’s governance framework, its central board, at its meeting on Friday, decided that the matter required further examination.
While the RBI, under its previous Governor Urjit Patel, stonewalled any move to let the government have more say in its affairs, the banking regulator, under the newly appointed Governor Shaktikanta Das seems to have taken a conciliatory approach.
At his maiden press meet on Wednesday after assuming charge as the 25th Governor of RBI, Das said: “I would not like to go into what the issues were or what the issues are between the government, which runs the country, and the RBI.
“But every institution has to have its professional integrity, maintain its professional autonomy. At the same time, every institution also must adhere to the principles of accountability.”
Besides discussing the governance framework, the Reserve Bank of India, in a statement, said its central board reviewed, inter alia, the current economic situation, global and domestic challenges, matters relating to liquidity and credit delivery to the economy, and issues related to currency management and financial literacy.
The Board also discussed the draft report on Trend and Progress of Banking in India (2017-18). The Board also placed on record its appreciation of the valuable services rendered by Urjit R. Patel during his tenure as Governor and Deputy Governor of the Bank.