After about two years, the Reserve Bank of India (RBI) has resumed interaction with investors, with Governor Shaktikanta Das meeting foreign investors in Hong Kong on Tuesday.
His predecessor, Urjit Patel had refrained from meeting the investor community.
“Held an interactive meeting with FPIs in Hongkong today. Good participation and discussion,” Mr. Das tweeted on Tuesday.
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Sources indicated that the Governor was open to suggestions on guidelines pertaining to foreign portfolio investments.
Recently, the RBI decided to allow FPIs to take exposures of more than 20% in a corporate entity.
After taking charge in December, Mr. Das had made it clear that his approach would be consultative.
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He has held a series of meetings with public sector banks, private banks, cooperative banks, non-banking finance companies, economists and also with industry bodies.
“This is a big positive change at the RBI, with the Governor meeting all quarters and sections of the market. Any leader of an organisation should be communicative and take feedback from all sections. Such meetings will help the RBI to maintain a connect to the ground realities,” Nirmal Jain, founder and chairman, IIFL Group, said.
The Governor, according to market sources, communicated that since inflationary pressure had ebbed, there was no point in waiting for a rate cut. RBI has reduced the interest rate by 25 bps last week to address growth concerns.
The Governor also seemed to have indicated that the growth potential had increased to 8% lately, especially after recent reforms for GST and the bankruptcy code.