At ‘courtesy meet’, finance minister, RBI governor take stock of economy

NEW DELHI: Reserve Bank of India governor Shaktikanta Das met finance minister Arun Jaitley on Sunday for a discussion on the state of the economy.

Das tweeted a photo of the “courtesy meeting” with Jaitley, who is recovering from an infection. The discussions at the hour long meeting were the first between the government and the central bank since election results were announced on Thursday, and came weeks before the monetary policy committee meeting, where the interest rate will be reviewed.



Industry and economists have been complaining about signs of a slowdown in the economy, and have cited cash crunch with non-banking finance companies as a big reason for a dip in demand for cars and durables.

Besides, the RBI is to announce a new policy on loan restructuring and insolvency action against companies that default in loan repayment.

The details of the discussions between Das and the FM were not immediately known. On Friday, Jaitley had met top finance ministry officials, where he ordered a two-month extension for the committee drafting the Direct Tax Code to replace the 58-year-old income tax law.

The meeting with the RBI governor came amid rumours over Jaitley’s health, which were denied by the government. Media has also been advised to stay clear of rumour mongering after reports appeared in sections of media.

The finance minister was a key member of Prime Minister Narendra Modi’s first cabinet and was responsible for running several other ministries including corporate affairs, defence and information and broadcasting. The new government is expected to announce a slew of economic measures with the budget expected to be presented in less than 45 days.