A most remarkable period of stewardship of the Reserve Bank of India (RBI) ends today as Shaktikanta Das steps down as Governor. Das assumed charge at a most difficult time for the financial markets and for the regulator. And when he hands over charge to his successor, Sanjay Malhotra, it will be with a justifiable sense of pride for what he has been able to achieve in the last six years at the helm of the central bank.

He can count many achievements. Taking over in the backdrop of turmoil in the financial markets following the collapse of IL&FS and friction between his predecessor, Urjit Patel, and the government, Das had to immediately summon all his experience in the bureaucracy to smoothen ruffled feathers, both in the markets and the government, which he did with aplomb. He handled the Dewan Housing Finance bust-up and the near collapse of Yes Bank, both within a few months of his assuming office, with a firm hand, even while signalling to the markets the central bank’s commitment to maintain stability. But the biggest test of his office, indeed his career, was to come in a year when Covid hit the world. Das’ stewardship of the RBI in this period was outstanding. The central bank cut repo rates by a massive 75 basis points within three days of lockdown. This was followed with frequent, proactive policy measures to calm the markets and the financial sector, coordinating strategy with the government to reassure businesses and markets and keeping communication channels open, appearing before the media at frequent intervals.

Speaking at the businessline Changemakers Awards event in New Delhi about a year ago where he received the Changemaker of the Year 2023 award, Das dwelt at length on the steps that the RBI had to take to keep its staff protected even while ensuring that market operations functioned without interruption. In recent times, the RBI has not shied away from wielding the stick to keep its regulated entities in line — whether banks, NBFCs or fintechs — in the matter of curbing sharp practices. A notable facet of the RBI under Das was its ability to “smell a crisis”, as he put it in the interview at the Changemakers Awards event, whether it be runaway lending by banks unmindful of risks, or attempts to evergreen loans by some NBFCs. Despite such a stellar list of achievements, one suspects that what Das would cherish most is his role as inflation warrior.

Over the last few months, there have been calls from various quarters, including this newspaper, for him to adopt a more benign stance in favour of growth by cutting rates. But he has refused to shed his samurai suit and sword until the “elephant retreated into the woods” without a threat of return. Look at what the RBI Act says in the matter of Flexible Inflation Targeting, he said, in the latest policy statement last week. Das has taken the inflation battle to the decisive stage; his successor will have a much easier job, at least on this front. While Das’ steadfastness is to be admired, the jury is out on whether his commitment to stable prices will come at a cost to growth, and if yes, by how much. Das’ list of achievements as Governor are many. Yet, history will probably judge him only on his success as an inflation warrior. That is the lot of central bank governors.