Monday, March 30, 2020
Home Economy and Finance Has PM Modi sounded the start of slog overs with the new RBI Governor's...

Has PM Modi sounded the start of slog overs with the new RBI Governor’s appointment?

This is almost a signalling of intent by Modi: that he is no longer willing to play Mr Good Guy who loses at the end. And that he is not going into 2019 without a fight. The slog overs have begun, and Modi is padding up, watch out in the stands.

Also Read


Yesterday, we saw the abrupt resignation of RBI Governor Urijit Patel. Patel cited “personal reasons” for his resignation, but the undercurrents were impossible for anyone to ignore. Irrespective of what may be the actual reason, no one can deny that the relation between the RBI and the Government of India, was tenuous at the very least.

Today, we saw the results of 5 major states’ assembly elections pan out. Counting is still on, but very clearly BJP has under-performed. Anti-incumbency, local factors etc can be argued to be the cause of disappointing results, but the fact of the matter remains that these results do not indicate an easy 2019 campaign.

And just a few minutes ago, it was revealed that Shaktikanta Das, who is currently a member of The Finance Commission and Former Finance Secretary (the one who presided over Demonetisation), has been appointed as the new RBI Governor. India has had several former bureaucrats as RBI Governor, but this is Modi’s first such appointment. And the timing is interesting.

- article continues after ad - - article resumes -

Imagine a Government which feels it is being stifled economically to roll out measures which it believes will improve the economy, and thus general prosperity. Imagine a Government which has tried this by playing the game in a gentlemanly fashion. Imagine a Government which is now in its last few months. What will it do?

By all means, Modi is now going for the kill. He worked with two economists RBI governors, and now he feels its time he plays with one who can aide him and his Government in rolling out all that they want. The last roll of the dice if one may say.

This could mean many things. We may finally see a rate cut in line with the Government’s requirement. We could see lesser curbs on lending to MSMEs, thus spurring their growth. We could see a relaxation of the RBI’s prompt corrective action, which imposed lending curbs on 12 weak PSU banks. We could see more liquidity flowing to the shadow banking sector, reeling under defaults of Infrastructure Leasing & Financial Services (IL&FS). We could see an independent payments regulator, something which the Government wants, but the RBI is publicly against.

What could all of the above mean for India and Modi? It can spur growth and demand, thus creating jobs, and possibly easing some rural distress. It can change the optics (of growth numbers) as well as the actuals (direct increase in demand). And both are crucial, especially in an election year.

Appointing an IAS to the post of Governor is not out of place, but coming on the back of 2 high profile non-bureaucrat appointees, this one may raise a stink in the corridors of policy wonks. But it seems Modi no longer cares for these ivory tower optics. His average voter in UP or MP barely knows and cares for who is the RBI Governor. But he does care if he gets a business loan cheaper and quicker, if his produce has demand, if his son gets his job. This is a trade-off and it appears Modi has settled for this.

This is almost a signalling of intent by Modi: that he is no longer willing to play Mr Good Guy who loses at the end. And that he is not going into 2019 without a fight. The slog overs have begun, and Modi is padding up, watch out in the stands.

- Support OpIndia -
Support OpIndia by making a monetary contribution

Trending now


Latest News

King Maha Vajiralongkorn of Thailand goes into isolation with his harem of 20 concubines in Germany, books an entire luxury hotel

Thailand King Maha Vajiralongkorn has booked out the entire Grand Hotel Sonnenbichl in Bavaria, with permission from local council

Latest updates and important links about COVID-19 coronavirus

Live statistics and tracking of news related to COVID-19 coronavirus with focus on India.

Pakistan heaps praise on China amid Coronavirus pandemic, Imran Khan’s advisor says stranded students in Wuhan grateful to Pakistan for not evacuating them

The world has a lot to learn from China regarding the prevention and control of communicable diseases: Imran Khan’s adviser said

UP Govt takes over Jaypee Sports City to house migrants returning from Delhi in quarantine

Authorities in Noida have decided to take over the Jaypee Sports City in order to house the migrants fleeing to UP from Delhi.

Coronavirus fight: Assam man offers to donate 4 acres of land to build a hospital for treatment of COVID-19 patients

Krishna Mahanta has written a letter to the Kaliabor Sub-Divisional Officer offering to donate land for COvid-19 hospital

Centre directs States to seal borders and prevent outflux of migrant workers in the wake of coronavirus lockdown

Migrant workers who have violated lockdown guidelines and travelled to other states are to be kept under quarantine for 14 days.

Recently Popular

Infosys employee Mujeeb Mohammad arrested for asking people to ‘spread the virus’ by sneezing in public, fired by the company

Although earlier Infosys said that it could be a case of mistaken identity, later they admitted he was their employee & fired him

PM Narendra Modi launches “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund” to receive public donations for fight against Covid-19

This fund will enable micro-donations and large number of people will be able to contribute with smallest of denominations

Manufactured crisis? Delhi govt cut electricity and water supply of migrant workers​, told them buses were waiting for them at UP border

Essentially, it seems like the Delhi government manufactured a crisis and forced migrant workers to flock to the UP border amidst Coronavirus lockdown

Ramayana in the digital​ age: The first​ episode crashes Doordarshan website, top searched in India on Google

As the first episode of Ramayan went live, Ramanand Sagar's Ramayana on Doordarshan become the top search on Google in India

Abu Khalid al-Hindi who attacked Sikhs in Afghanistan was one Mohammed Sajid from Kasargod ISIS module, Kerala: Here is all you need to know

Terrorist who attacked Sikhs in Afghanistan was one Mohammed Sajid Kuthirummal who had escaped from Kasargod, Kerala in 2015 to join ISIS

Subscribe to our newsletter

Each morning, get an email to keep updated with all the news, opinions and analysis published by OpIndia.

Connect with us