Why Is The Internet Talking About Shaktikanta Das

Ann Santiago
December 14, 2018

However, many have linked the resignation with the growing rift between the RBI and Narendra Modi's government over the past few months.

He was widely perceived to be a contender for the top job at the RBI after the exit of former governor Raghuram Rajan in 2016.

The RBI, however, was not in favour of any relaxation with its deputy governor Viral Acharya recently defending the PCA framework saying that the banks would have incurred even higher losses and required even more of taxpayer money for recapitalisation.

Union finance minister Arun Jaitley has said Das has the "right credentials" to head the central bank. "We haven't destroyed it (RBI as an institution) in any way", he told the media.

Yes Bank Ltd said it was on track to find a new chief executive officer within the central bank's February 1 deadline, but the lender's shares fell sharply as the market was expecting some clarity at its board meeting on Thursday.

There have been rumours about Acharya, whose speech on October 22 had brought the government-RBI stand-off out in open, putting in his papers.

A Google trend result shows that people searched for "Shaktikanta Das Caste' after the appointment of the new RBI governor.The rupee has stumbled, Urjit Patel led RBI has had a recent history of spats with the govt. and India Inc. and investors are keeping a close eye on RBI".

Gadkari, who handles many key infra ministries, asked if the government is held responsible for the economic situation, then how can RBI work autonomously.

"The Supreme Court can be an autonomous body".

The government stand that significant decisions should be discussed at the board level has been viewed as a proposal to transform RBI into a board-managed company like corporates.

The PCA framework kicks in when banks breach any of the three key regulatory trigger points - namely capital to risk weighted assets ratio, net non-performing assets (NPA) and return on assets (RoA).

He added, "Long back Maharashtra government had given a loan to Vijay Mallya through the state PSU Sicom, and he used to repay the interest diligently for 40 years". If a person who was repaying the debt for 40 years, and due to some issues he is not able to meet his debt obligations later, can you declare him a wilful defaulter?

"If Nirav Modi or Vijay Mallya have committed fraud then send them to jail, but if we label everyone who is in financial trouble as fraudsters, then the economy will not progress", he warned.

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