HYDERABAD : It appears that the RBI Central Board, which met days after Shaktikanta Das took over as governor, had an unassuming agenda, contrary to perceptions: restore peace, keep calm and carry on.
There are pressing matters on hand, liquidity issue for one, but on Friday, the 18-member Board decided that all else can wait, and hence, deferred decision-making for another day.
Ditto with the proposed RBI’s governance framework, which came under sharp focus amid speculations of the Board gaining a superior hand, but that too, was put on hold.
“The Board deliberated on the Governance Framework of the Reserve Bank and it was decided that the matter required further examination,” RBI said in a statement. The outcome of Friday’s meeting, held under intense media spotlight, clearly was an attempt to keep a lid on the raging criticism, as “any favourable decision (to government) would be seen as RBI caving in under the new Governor, irrespective of whether there’s merit or not”, a source told Express.
Interestingly, the Board even spent lesser time than its previous nine-hour marathon meeting, but apparently discussed far wider topics ranging from global challenges and currency management to financial literacy. It was anticipated that at least the appointments of the proposed Economic Capital Framework and its terms of reference would be contemplated, but the Board steered clear of reaching any conclusions. “It’s another matter if we discussed or not,” he said. The PCA norms, which the Board advised RBI’s internal committee to revisit, also saw bare minimum mention on Friday.
“The 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 draft report on Trend and Progress of Banking in India (2017-18) was also discussed,” RBI said.
A captain who defies conventions
Three days ago, the new RBI Governor defied convention, announcing his chieftainship via Twitter. The following day, he surprised yet again addressing media alone, sans his four deputies. His first Board meeting as chairperson too remained unconventional, by not rushing on key issues, but by simply using time as a healer.