Meet our New RBI Governor – Mr. Shaktikanta Das
Background on Shaktikanta Das
Is an IAS officer.
Became Revenue Secretary in June 2014. A revenue secretary looks over the collection of direct taxes (income tax) and indirect taxes (VAT, service tax, etc. previously, now GST). Was Revenue Secretary till 2015. He has a great knowledge regarding taxation and tax in the economy. Was the main person in the planning and structuring of current GST system.
Was Economic Affair Secretary from 2015 to 2017. One of the persons who knew about demonetization.
Retired in 2017. After retirement became a member of Finance Commission. Finance commission primarily decides how all the collected tax will be distributed across all the states. Is also a member of the finance commission currently. But will leave it, as now he has been appointed as the RBI Governor.
Thus, it can be seen that Mr. Shaktikanta Das has been involved in every almost economic activity.
Criticism to Mr. Shaktikanta Das
Many are criticizing that he is not an economist. Are also arguing that how can an IAS officer be appointed as the RBI Governor. These people should note that there have been IAS officers appointed as RBI governor previously too.
Mr. Y.V. Reddy is one of the examples. He too was an IAS Officer. He was the RBI governor from 2003 to 2008. Mr. Y.V. Reddy was a very successful RBI governor.
Link between RBI and Government
There is a visible friction between the RBI and the government currently. Mr. Shaktikanta Das might probably smooth out the differences.
The government wanted to take some aggressive steps to boost the economy. And possibly, Mr. Urjit Patel did not agree with the government on these steps and resigned stating personal reasons. Hopes are that Mr. Shaktikanta Das will be able to handle out the government’s point of view effectively. He might also take measures to relax the Prompt Corrective Actions (PCA’s) norms taken by the RBI to control the banks as this will also support the economy.