The turbulence between RBI and the Ministry of Finance has come to a close. The appointment of Mr Shaktikanta Das as Governor, RBI (a little bird had said that he was the front-runner for this post last time around!) brings stability and dialogue back into the system. He is known to be a steady hand, mature, balanced, deeply committed and with very good values. The Finance Minister can sit back and relax because he has put “Rahul Dravid” in the RBI Governor’s Chair.
The Finance Ministry must always seek higher growth. The RBI must always seek low inflation and be conservative in its approach. This is not something new. But both have always managed this difference through dialogue.
Once upon a time, the RBI Governor and the Secretary, Economic Affairs talked with each other every morning over their early morning cup of tea. Complete synergy was established and differences, if any, were resolved comfortably.
Mr Shaktikanta Das and Mr Subhas Garg (Secretary, Economic Affairs now), will no doubt bring that “connect” and teamwork back.