At ‘courtesy meet’, Finance Minister, RBI governor take stock of economy


At ‘courtesy meet’, Finance Minister, RBI governor take stock of economy


HIGHLIGHTS

The meeting with the RBI governor came amid rumours over Arun Jaitley’s health, which were denied by the government on Friday, Jaitley had met top finance ministry officials, where he ordered a two-month extension for the committee drafting the Direct Tax Code to replace the income tax law
NEW DELHI: Reserve Bank of India governor Shaktikanta Das
met finance minister Arun Jaitley on Sunday for a discussion on the state of the economy.
Das tweeted a photo of the “courtesy meeting” with Jaitley, who is recovering from an infection. The discussion of the  hours long meeting was the first between the government and the central bank since election results were announced on Thursday, and came weeks before the 
meeting, where the interest rate will be reviewed

Industry and economists have been complaining about signs of a  damping in the economy, and have cited cash crunch with non-banking finance companies as a big reason for a dip in demand for cars and durables.

Besides, the RBI is going to announce a new policy on loan restructuring and insolvency action against companies that default in loan repayment.
The details of the discussions between Das and the FM were not immediately known. On Friday, Jaitley had met some top finance ministry officials, where he ordered a two-month extension for the committee drafting the Direct Tax Code to replace the 58-year-old income tax law.

The meeting with the RBI governor came amid rumours over Jaitley’s health, which were denied by the government. Media has also been advised to stay clear of rumour after reports appeared in sections of media.

The finance minister was a key member of Prime Minister Narendra Modi’s first cabinet and was responsible for running many other ministries including corporate affairs, defence  , information and broadcasting. The new government is expected to announce a slew of economic measures with the budget expected to be presented in less than 45 days.


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