RBI Governor to meet associations of industry, commerce

RBI Governor to meet associations of industry, commerce

Mumbai: Continuing his series of consultations with various stakeholders of the economy, Reserve Bank of India Governor Shaktikanta Das on Wednesday said he would meet the representatives from the industry and commerce on Thursday.

“Will meet the apex chambers/associations of industry and commerce tomorrow (17th January),” Das said in a tweet. This is his fifth tweet since he assumed charge as Reserve Bank of India (RBI) Governor on December 11 last year.

The meeting becomes significant as the industry expects monetary policy easing by the central bank as the inflation is down and within control. The RBI will have its sixth bimonthly monetary policy meeting on February 7 and the industry is expecting a cut in policy rates.

Das, who replaced Urjit Patel after he suddenly resigned on December 10 following a tussle with the Central government over liquidity concerns, has been holding meetings with various groups to review the situation, unlike his predecessor.

Since joining office, Das has already held meetings with public and private sector banks, cooperative banks, MSME (micro, small and medium enterprises) associations and representatives of non-banking financial companies (NBFCs).

He had recently said the central bank will continuously monitor the liquidity situation and will take need-based steps to deal with the liquidity deficit. Liquidity became a concern after infrastructure financing company IL&FS defaulted on its dues.

While liquidity crunch hit the NBFC sector last September after payment defaults by IL&FS and its subsidiaries, small and medium industries were yet to recover from the fallout of 2016 demonetization of high denomination currency notes and the GST rollout in July 2017.

A day after joining RBI, on December 12, Das had said that the health of public sector banks, liquidity issue and maintenance of growth trajectory of Indian economy are some of the important issues for which he would interact with stakeholders and get internal feedback before forming a view.