Known as someone who calls a spade a spade, the fearless RBI deputy chose not to play second fiddle to the Governor and instead make his own mark
The outgoing Deputy Governor warned that public sector borrowing is close to the levels seen during the ‘taper tantrum’
We all know how the inflation targeting framework set the gold standard to bring prices down. To stretch it a little further, why not apply it to break the back of the NPA problem? Over to RBI
Just a month ago, economists predicted rates would start rising next quarter. But they have flipped that outlook in the first survey taken since RBI Governor Urjit Patel's sudden resignation on December 10.
The study stressed that RBI is not over-capitalised and it needs to raise its capital ratio.
The stance of the government comes after former RBI Governor Urjit Patel claimed that the central bank didn't enjoy much power over public banks to stop or contain bank frauds
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Patel resigned after a long tussle over policy with the government that raised concerns
Many blamed the pressure brought by the government on the central bank to ease lending restrictions and release more of its capital to bolster the economy for Patel's resignation.
The current RBI-government relationship was the result of a broad intellectual consensus that was based on evidence in the Indian context and defied easy ideological classification
In the meantime, the sector continued to sit on the mount of NPAs even as efforts continued in courts and tribunals and other forums for recovery of stressed assets, further confounded by defaulting promoters of defaulting corporates coming back to reclaim their assets when they were put on sale by aggrieved lenders.
All six members of the Monetary Policy Committee (MPC) had voted for keeping the key benchmark rate unchanged, said the Minutes of the MPC meeting released by the Reserve Bank on Wednesday.
Jaitley also hit out at previous government for displaying a "defeatist" attitude in the face of an "indifferent" RBI when it came to the matter of interest rate.
Responding to criticism over surprise resignation of Patel as RBI Governor earlier this month, he said there were cordial discussions at the meeting of the RBI board over issues such as the appropriate size of reserves the central bank must hold.
Rice added that the IMF had "taken note of" Urjit Patel as the governor of the RBI and the appointment of Shantikanta Das as his replacement.
Chidambaram also hoped that Das stands up to the autonomy and rights of the RBI.
Coal Minister Piyush Goyal, who manned had North Block when Jaitley was on medical leave, hit out at RBI for making "unreasonable" amendments to the framework.
Many explanations will be given for the poll results, but there’s near unanimity that the departure of RBI governor Urjit Patel is a self-inflicted wound which the NDA should have avoided, both for its own sake and for that of the economy.
Much of central banking literature is focused on the need to have monetary policy rules and targets, ignoring this vital governance aspect of central banks. This needs to change
Shaktikanta Das was instrumental in setting up the Monetary Policy Committee and played a key role in the government's demonetisation drive.
Patel resigned abruptly from the post of the Governor on December 10, nine months before his term was scheduled to come to an end in September 2019.
"Assumed charge as Governor, Reserve Bank of India. Thank you each and everyone for your good wishes," Das said in a tweet.
The announcement comes after Urjit Patel announced his resignation from the post on December 10.
M Saraswathy is in conversation with Ravi Krishnan, Deputy Executive Editor, Moneycontrol to discuss the possible repercussions of Urjit Patel's resignation.