What does Shaktikanta Das think about new RBI Governor Sanjay Malhotra?

Outgoing Reserve Bank of India (RBI) Governor Shaktikanta Das spoke about his successor IAS Sanjay Malhotra, on December 10, according to a report by PTI. “The new RBI Guv Sanjay Malhotra has vast experience, I am sure he will do his best,” Das said.

On the RBI's likely future focus, Das said restoring the inflation-growth balance is the most important task ahead for the central bank. The Indian economy is resilient and robust, with the capacity to deal effectively with global spillovers, he said.

Addressing a press conference on his last day as the central bank chief, Das said his successor will have to navigate the changing world order, effectively deal with cyber threats, and focus on harnessing new technologies. Thus, he hoped that new Governor Malhotra would carry forward RBI initiatives such as the Central Bank Digital Currency (CBDC) and unified lending interface (ULI) and promote financial inclusion.

Further, on the future of India's digital currency, Das added that CBDC has “huge potential”. Revenue Secretary Malhotra will take over as the central bank chief from December 11, 2024.

Top Updates — What Shaktikanta Das Said

• “I had mentioned about the challenges in the banking sector. I also mentioned the challenges at that time (when I joined in 2018)... I also talked about the liquidity issue which needs to be addressed and finally, I said that flexible inflation targeting the framework of flexible inflation targeting is very important and there is always a need to maintain inflation while being mindful of the growth trajectory. These were the exact words. So in the last six years, I have endeavoured to adhere to these principles which I had mentioned when I took over as the RBI governor…” Das stated.

• The report added that Das, who served as RBI chief for six years, said the coordination between the finance ministry and the RBI has been at its best during this period. 
• He added that while the perspectives of the finance ministry and the RBI can differ at times, all such issues were resolved through internal discussions during his tenure.
• When making decisions, Das told reporters that RBI governors consider the requirements of the wider economy. "Eventually, it is a judgement call that every governor takes," he said.
• He further said the RBI's effort has been to make monetary policy as appropriate as possible, given prevailing economic conditions and outlook, noting that "growth is impacted by a multiplicity of factors, not just the repo rate".

(With inputs from PTI)