All eyes on RBI governor’s meeting with PSU banks

Consultations will be key to addressing issues, says Das

MUMBAI: The new RBI Governor, Shaktikanta Das (seen in the picture), seemed to be trying to sound more consultative and receptive in his approach to issues and that was the very message he wanted to give to the market on the first day of his office.

He gave an air that he was also quick to address issues, and that has been manifested by the decision to convene a meeting of the heads of Mumbai-based public sector banks on Thursday itself to discuss the issues faced by the banks.

The banks under PCA will certainly be one of the issues at the meeting among others such as the NPAs, recapitalization of banks, new interest rate benchmarks, etc.

“Banking is an important segment of our economy and it’s facing several challenges, which are of critical importance. I would like to focus on banking sector immediately,” the new Governor said while addressing the media.

He made it amply clear that there would be more space and time for bilateral dialogues and issues will primarily be approached through consultations and dialogue, a style the markets view as in total departure from that of his predecessor.

Being viewed as a government’s man, it is believed that the banking sector will witness a lot of easing on the areas of PCA, recognition and solution of NPAs etc, the areas where the old regime had differences with the Finance Minister Arun Jaitley too.

“Decision-making has become very complex and consultation with stakeholders is very important. Consultation with stakeholders adds value to our understanding of issues. It adds depth to our understanding of issues. I propose to undertake consultations wherever necessary,” Das told reporters at a press conference in Mumbai.

Das said he would not go into specific issues between RBI and the government, but underlined the need for discussions between the two. The Governor scotched the doubts about the board meeting scheduled for December 14 and said it would go ahead as planned.

 

 

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