'RBI And Finance Ministry Coordination At Its Best', Says Das In Outgoing Address

The Reserve Bank of India and the Finance Ministry have been on the "best" terms with "excellent" coordination and cooperation, the outgoing central bank governor, Shaktikanta Das, said said in his farewell address. He also declined speculations of tensions between the two after the recent growth slowdown.

The coordination between the North Block and India's central bank has been at its best, Shaktikanta Das said in his last press conference as the Governor. "Have had excellent coordination and cooperation," and have the "same level of coordination continues as we speak now," he said.

The perspectives of the central bank and the Finance Ministry may differ at certain times, Das explained but added, "I believe in my tenure we have been able to settle such things."

Governors keep in mind the needs of the broader economy when deciding on things and "eventually it is a judgment call every time," he said.

Das will demit office later on Tuesday, after serving as the 25th Governor of the RBI, marking the end of his six-year tenure.

Earlier in the day, he thanked Prime Minister Narendra Modi for his guidance throughout his tenure.

"Heartfelt thanks to Hon'ble FM @nsitharaman for her constant support and backing," he said on X, acknowledging the North Block's support.

Speculations have been rife as India's economic growth slowed to a near two-year low, while inflation remained above the Reserve Bank's target range.

In the latest monetary policy meeting, Governor Das trimmed the GDP growth forecast for the full financial year to 6.6% from 7.2% estimate previously. The third-quarter growth is expected to come at 6.8%, down from 7.4% while the final quarter estimate was cut to 7.2% from 7.4%, Das said.

Senior bureaucrat Sanjay Malhotra was named as the next governor of the RBI and will take office after Das demits today. Malhotra, an Indian Administrative Service officer of 1990 batch from the Rajasthan cadre, is presently serving as the revenue secretary in the Ministry of Finance.

Prior to taking charge as the revenue secretary in November 2022, Malhotra served as the secretary in the department of financial services for about a nine-month tenure starting in February 2022.