INSUBCONTINENT EXCLUSIVE:
of the Reserve Bank of India (RBI), said on Wednesday that he would adopt a consultative approach and move quickly to meet the chiefs of
state-run banks to tackle issues facing the banking sector
"I propose to undertake consultations with stakeholders wherever necessary," he said at his first news conference after taking charge as
following a drawn out public dispute with the government.Mr Das said the banking sector would be his key focus area and more measures were
A meeting with the heads of a number of state banks would be held on Thursday, he said.Analysts said the move to open up a dialogue was
positive."He is trying to give comfort to the banking industry against the backdrop of continued concerns on the financial stability front,"
said Rupa Rege Nitsure, chief economist at LT Financial Holdings.Mr Das's open style of communication is likely to be the way business will
be conducted within the RBI as well as with outsiders, a marked departure from the previous regime.At the news conference, he answered
questions from at least a dozen journalists, unlike his predecessor who only answered questions from a select few at bi-monthly monetary
policy meetings.While assuring that he would defend the central bank's autonomy at a time when the government has put pressure on it to ease
regulatory curbs and boost growth, Mr Das, a veteran government bureaucrat, also highlighted the need to take the government's views on
board."Government is not just a stakeholder, but the government of the day runs the economy and manages major policy decisions," Mr Das
said, responding to a question on the breakdown of communication lines between the two sides."So there has to be free, fair, objective and
very frank discussions between the government and the RBI," he said.Eye on growthA seasoned bureaucrat who has worked under two successive
finance ministers from two opposing political parties, Mr Das is known for his preference towards pro-growth policies.That will be key to
Prime Minister Narendra Modi as he tries to woo voters ahead of general elections due by May, after facing defeat in five recent state
polls.PM Modi also needs the RBI's support in getting additional funds from the central bank's capital reserves to help pay for any populist
measures ahead of the general elections.While Mr Das declined to elaborate on steps he had in mind to boost the economy, he sounded dovish
on inflation and growth, which could mean a relaxation of some regulatory rules for banks."Inflation targeting is an important function
which the RBI Act has mandated
It's a mandatory part of RBI's functioning
So that will remain very important," Mr Das said, adding that the Act also mentions the importance of economic growth."Maintenance of the
growth trajectory of the Indian economy is also important," Mr Das said.Retail inflation on Wednesday fell to a 17-month low of 2.33 per
cent in November, lower than an expected 2.8 per cent, driven by weaker food inflation.
