Reserve Bank of India (RBI) Governor Shaktikanta Das reflected on the illustrious journey of the central bank over the past nine decades, at the commemoration ceremony of 90 years of the RBI held in Mumbai on Monday.
Addressing the audience, Governor Das underscored the institution’s integral role in India’s economic progress and its adaptability in the face of evolving challenges.
Governor Das remarked, “The journey of reserve bank over the 9 decades has been one of efficient functioning and contribution to the nations’ progress.”
He highlighted the RBI’s evolution from its early role as a central bank primarily concerned with resource allocation during the planning period to its current status as a facilitator of the market economy.
Governor Das emphasized the pivotal role of structural reforms in shaping the RBI’s response to contemporary challenges.
He cited landmark initiatives such as the enactment of the Insolvency and Bankruptcy Code and the adoption of flexible inflation targeting as instrumental in fortifying India’s banking system and ensuring price stability.
Das said, “The RBI’s evolution as an institution has been closely intertwined with the development of the Indian economy. From being a central bank primarily concerned with the allocation of scarce resources during the planning period, the RBI has transitioned into being an enabler for the market economy.”
He further said, “The path-breaking structural reforms such as the enactment of the Insolvency and Bankruptcy Code and the adoption of flexible inflation targeting in recent years have helped us to deal with the challenges in the banking system and the task of maintaining price stability more effectively. Given the rapid changes taking place in today’s world.”
“The Reserve Bank is constantly evaluating the emerging trends and taking necessary policy measures to remain in sync with the changing times”, he added.
Acknowledging the unprecedented challenges posed by the COVID-19 pandemic and ongoing geopolitical hostilities, Governor Das praised the resilience of the Indian economy.
He credited the well-calibrated and coordinated monetary and fiscal policies adopted by the country for shielding the economy from external shocks and facilitating a robust recovery.
Governor Das Stated, “The Covid-19 pandemic and the ongoing geo politics hostilities have tested the resilience of every economy in the world, including India. The well-calibrated and coordinated monetary and fiscal policies adopted in our country went a long way in shielding our economy from these shocks and helped us to emerge even stronger than before.
Governor Das concluded his address on an optimistic note, highlighting India’s robust GDP growth, moderating inflation, stable financial sector, resilient external sector, and record-high forex reserves.
He reaffirmed the RBI’s commitment to monitoring emerging trends and implementing necessary policy measures to ensure continued alignment with the evolving economic landscape.
He emphasised, “It’s a matter of satisfaction that today our GDP growth is robust, inflation is moderating, the financial sector is stable, the external sector remains resilient, and the forex reserves are at an all-time high.”