Mumbai: Reserve Bank of India (RBI) has resumed the practice of meeting bankers and other associations from the financial sector ahead of its monetary policy meeting next week, said a person close to the development.
The central bank’s monetary policy committee will meet next week to discuss and decide on first bi-monthly policy statement for fiscal 2019.
Under the governorship of D. Subbarao, it was the usual practice of meeting bankers, under aegis of Indian Banks’ Association, and other such as Fixed Income Money Market and Derivatives Association of India and Foreign Exchange Dealers’ Association of India, among others.
The idea of such meetings was to understand the trends in the financial sector, macroeconomic data and as well take stock of prevailing liquidity conditions. This was also the forum for banks to put forth their ideas, not only limited to broader interest rates, related to various aspects of banking such as payments infrastructure, currency management etc.
In fact, banks used to also meet RBI governor and deputy governors post the announcement of the monetary policy.
However, such meetings became less frequent under the regime of Raghuram Rajan, who served as the governor of the central bank for a three-year period ranging September 2013 to 2016.
These meetings stopped completely under current RBI governor Urjit Patel.