Reserve Bank of India Governor Urjit Patel, on Friday, said one cannot and should not underestimate the sagacity and uncommon courage of the government to undertake reforms that can only be described as truly transformative.
In this regard, the Governor lauded the government for instituting three landmark reforms – investing the RBI with the specific mandate to operate the monetary policy framework “to maintain price stability while keeping in mind the objective of growth”, establishing the Goods & Services Tax Council, and enacting the Insolvency and Bankruptcy Code.
“These (reforms) will shape, for the better, our economic evolution in the years and decades to come,” said Patel in his remarks during the Convocation Ceremony at the Meghnad Desai Academy of Economics.
Referring to the amendments to the RBI Act legislated by the government in 2016, the Governor observed that this led to a fundamental shift in the institutional architecture for the conduct of monetary policy, with the formal transition to a flexible inflation-targeting framework and the relinquishing of the monetary policy decision by the Governor to a six-member Monetary Policy Committee (MPC).
Patel called the establishment of the GST Council as another momentous reform, whereby the government created one of the most-effective institutional mechanisms for co-operative federalism.
He added that along with the State Governments, it (GST Council) has offered a refreshing counter-narrative to the divisive course of the international federal dialogue, voluntarily choosing to relinquish and then pool sovereignty for a larger collective cause.
Also, the enactment of the Insolvency and Bankruptcy Code, 2016, according to Patel, is a watershed event towards improving the credit culture in the country.
via RBI chief hails govt reforms – MONEY & BANKING – The Hindu BusinessLine
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