Shaktikanta Das: 6 years of reforms

An overview of major changes under his leadership

- RAGHU MOHAN

Regulatory Review Authority (November 2021) It's a reform that never received the credit it deserved. It incorporated some of the best practices from global central banks on consultation ahead of policy formulation; feedback from regulated entities (REs) and trade bodies; and structured meetings with banks' CEOs and senior compliance officials. Over 400 circulars were withdrawn. It was the central bank's 'open-door policy' aimed at fostering better engagement with REs. Regulatory Review Authority (RRA) 2.0 came two decades after Y V Reddy, as deputy governor, set up the first edition of RRA in 1999.

Playing the diplomat on new bank licences (November 2021) A Mint Road Internal Working Group (IWG) had, on November 20, 2020, made a case for large corporate and industrial houses as promoters of banks. It also suggested that large non-banking financial companies (NBFCs) with an asset size of ₹50,000 crore and above (including those owned by corporate houses) be considered for conversion into banks. However, instead of saying 'no' (which would have been seen as inflexible), the Reserve Bank of India (RBI) played it smart. While accepting 21 of the IWG's 31 recommendations, it said that "the remaining recommendations are under examination".

Housekeeping in shadow banks (October 2022)