RBI is more than autonomous, but govt is the sovereign: Das

MUMBAI, Sept 20:Asserting that the Reserve Bank
is more than autonomous, governor Shaktikanta Das Friday said
though the central bank engages with the government in free
and frank discussions, there is no interference from it when

it comes to taking decisions.

Das said the differences of opinion between the
government and the monetary authority happens in all the
countries as the perspectives are different, but it is
essential to discuss, talk and resolve the differences.

“Let me tell you, there is lot of interaction between
the RBI and the government. But, so far as decision-making is
concerned or taking a final call on any issue is concerned, I
can tell you, with all my confidence, that they are taken by
the RBI and the RBI is more than 100 percent autonomous in
decision-making. Nobody interferes in my decision-making,” Das
told an event organised by the media house India Today group.

He said there has to be exchanges of ideas and
explaining one’s position to the other is necessary as it
creates a harmonious and healthy relationship.

The conversations with the government cannot be
stopped because the government is the sovereign and the RBI is
part of the sovereign, he underlined.

“The RBI is not a cheerleader for anyone but people
who say the central bank should not be a cheerleader for the
government, I have one question: ‘Do you expect the central
bank to go on lecturing and abusing the government on the
economy?’” Das wondered aloud.

There will be differences of opinions, there is a
difference of opinion between the RBI and the government on
several issues but we do talk and these discussions are
internally, he explained.

“If at the drop of a hat, I rush to the media and make
a statement expressing my differences with the government,
then what it is going to achieve,” Das asked and said it is
desirable that such expression of dissent is done internally.

“In fact, let me may tell you when you have such
discussions, the central bank carries greater weight in
getting things which it wants to get done,” the governor said.

It can be recalled that during the tenors of the past
two governors—Raghuram Rajan and Urjit Patel—the differences
between the government and the Mint Road began to spill onto
the public domain. This had both of them leaving and also the
deputy Governor Viral Acharya. (PTI)