RBI Governor Shaktikanta Das, while accepting the ‘Changemaker of the Year’ award on behalf of the Reserve Bank of India (RBI), emphasized the central bank’s unwavering commitment to maintaining the financial stability of the nation and fostering economic growth. He acknowledged that the award was a recognition of the collective efforts of more than 13,000 officers and employees at the RBI who played a crucial role in successfully guiding the central bank through the challenges posed by the COVID-19 crisis. Despite the progress made, Das acknowledged that new challenges continue to arise and the RBI remains prepared to address them. In the presence of Nirmala Lakshman, Chairperson of The Hindu Group, Union Power Minister RK Singh conferred the ‘Changemaker of the Year’ award to RBI Governor Shaktikanta Das.
Das emphasized that the RBI proactively established a quarantine facility and ensured the continuity of money market operations, even in the face of the COVID-19 lockdown, which lasted for an entire year.
When asked about the influence of his previous role as a senior bureaucrat in the Union Finance Ministry on his current position as RBI Governor, Das acknowledged that his prior government experience was beneficial. He mentioned that serving as a member of both the government and the central board of RBI during his government tenure had been advantageous, but he credited the RBI team for their incredible and significant contributions.
Das emphasized the critical need for effective coordination and strong cooperation between the government and the RBI to ensure the effectiveness of policy measures, regardless of whether they are initiated by the central bank or the government.
He pointed out that there has been outstanding coordination and cooperation between the government and the central bank in India. Das also highlighted the growing realization that these institutions rely on each other. The central bank requires government support for legislative changes, such as amendments to the RBI Act, granting legislative powers for regulating cooperative banks and NBFCs. Similarly, the government relies on the RBI’s support in dealing with crises, such as the fallout from events like the COVID-19 pandemic and the Ukraine war, as well as managing inflation.
In response to a question about the key qualities a central banker should possess, Das listed three important qualities:
- Strong common sense: Central bankers should be able to visualize how monetary policy measures will impact the real economy.
- Open-mindedness: Central bankers should have the ability to anticipate potential problems and crises and develop the capacity to detect and address them.
- Teamwork and leadership: Central bankers should encourage teamwork and collaboration through a collective process as effective leaders.
