Under citizenship cloud, RBI Guv Rajan has a very busy day one
6 Sept 2013 4:12 AM IST
New RBI Governor Raghuram Rajan on Wednesday came out with a slew of measures, including more trade settlement in rupees to rescue the battered financial markets and hinted at a shift in focus from inflation control, doggedly pursued by his predecessor, to boosting growth. Shortly after he took over as the 23rd Governor of the central bank, Rajan, 50, addressed the media with a prepared statement in which he laid out a detailed road map for his innings in the short term, which he called a ‘big initial package.’
He rescheduled the date for his much- anticipated first monetary policy statement to 20 September. Rajan also set up some committees to revise and strengthen the monetary policy framework, financial stability, financial inclusion, NPAs and an outside panel of experts headed by former Governor Bimal Jalan to screen applications for new bank licenses. He said the new bank licences will be issued around January. ‘I hope to announce the licences within, or soon after, the term of Deputy Governor Anand Sinha who has been shepherding the process. His term expires January 2014,’ he said.
Apparently reflecting a shift in the approach from his predecessor D Subbarao, who had serious differences with the government of late, Rajan said the primary role of the bank is monetary stability to sustain confidence in the value of the rupee. ‘Ultimately, this means low and stable expectations of inflation, whether that inflation stems from domestic sources or from changes in the value of the currency, from supply constraints or demand pressures.
‘...but we have two other important mandates; inclusive growth and development, as well as financial stability,’ he said. Asked about Subbarao’s focus on targeting inflation, Rajan said he would reserve his comments till 20 September.
He rescheduled the date for his much- anticipated first monetary policy statement to 20 September. Rajan also set up some committees to revise and strengthen the monetary policy framework, financial stability, financial inclusion, NPAs and an outside panel of experts headed by former Governor Bimal Jalan to screen applications for new bank licenses. He said the new bank licences will be issued around January. ‘I hope to announce the licences within, or soon after, the term of Deputy Governor Anand Sinha who has been shepherding the process. His term expires January 2014,’ he said.
Apparently reflecting a shift in the approach from his predecessor D Subbarao, who had serious differences with the government of late, Rajan said the primary role of the bank is monetary stability to sustain confidence in the value of the rupee. ‘Ultimately, this means low and stable expectations of inflation, whether that inflation stems from domestic sources or from changes in the value of the currency, from supply constraints or demand pressures.
‘...but we have two other important mandates; inclusive growth and development, as well as financial stability,’ he said. Asked about Subbarao’s focus on targeting inflation, Rajan said he would reserve his comments till 20 September.
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