(MENAFN - KNN India) RBI governor meets Jaitley to discuss state of economy
New Delhi, May 27 (KNN) Reserve Bank of India (RBI) Governor Shaktikanta Das on Sunday met finance minister Arun Jaitley for a discussion on the state of the economy.
Shaktikanta Das tweeted a photo of the 'courtesy meeting with Jaitley, who is recovering from an infection.
The discussion was first between the government and the central bank since election results were announced, and came weeks before the monetary policy committee meeting, where the interest rate will be reviewed.
Besides, the RBI is to announce a new policy on loan restructuring and insolvency action against companies that default in loan repayment.
Industry and economists have been complaining about signs of a slowdown 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.
The finance minister was a key member of Prime Minister Narendra Modi's first cabinet and was responsible for running several other ministries including corporate affairs, defence and 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.
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 58-year-old income tax law.