RBI completes 90 years: ‘Easily dealt with the challenges in the banking system’: Shaktikanta Das – Dainik Savera Times

Mumbai : Reserve Bank of India (RBI) Governor Shaktikanta Das reflected on the central bank’s illustrious journey over the last nine decades at the RBI’s 90th anniversary commemoration ceremony held in Mumbai on Monday. Addressing the audience, Governor Das underlined the institution’s integral role in India’s economic progress and its adaptability in the face of emerging challenges. Governor Das commented, “The journey of the Reserve Bank over 9 decades has been one of efficient functioning and contributing to the progress of nations.” He highlighted the evolution of the RBI during the plan period from its initial role as a central bank primarily concerned with resource allocation to its current position as a facilitator of the market economy.

Governor Das emphasized the important 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 helpful in strengthening India’s banking system and ensuring price stability. Das said, ‘The growth of RBI as an institution is closely linked to the growth of the Indian economy.

“From being a central bank primarily concerned with the allocation of scarce resources during the planning period, the RBI has transformed into becoming an enabler for the market economy.” He said, “Pathbreaking 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 deal with the challenges in the banking system and maintain price stability more effectively. ” Given the rapid changes taking place in today’s world.”

He said, “The Reserve Bank is constantly evaluating the emerging trends and taking necessary policy measures to keep pace with the changing times.” Recognizing 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 insulating the economy from external shocks and facilitating a strong recovery.

Governor Das said, “The COVID-19 pandemic and ongoing geopolitical hostilities have tested the resilience of every economy in the world, including India. The well-planned and coordinated monetary and fiscal policies adopted in our country have greatly helped our economy to cushion these shocks and have helped us emerge stronger than before. Governor Das ended his address on an optimistic note, highlighting India’s strong GDP growth, moderating inflation, stable financial sector, resilient external sector and record-high foreign exchange reserves.

He reaffirmed the RBI’s commitment to monitor emerging trends and implement necessary policy measures to ensure continued alignment with the emerging economic scenario. He stressed that, “It is a matter of satisfaction that today our GDP growth is strong, inflation is declining, the financial sector is stable, the external sector remains resilient and foreign exchange reserves are at an all-time high.”