RBI Governor Assures Stability and Growth in Financial Sector

The Reserve Bank of India (RBI) is committed to ensuring a strong and stable financial system, which will serve as the foundation for the country’s economic progress, Governor Shaktikanta Das reiterated during the RBI’s 90th commemoration function.

Addressing the gathering, Das highlighted the central bank’s proactive efforts to adapt to the rapidly changing global landscape, especially in areas such as technology, innovation, and financial sector complexities. He emphasized that the RBI is constantly evaluating emerging trends and implementing necessary policy measures to stay aligned with the evolving situation.

Das commended the well-coordinated monetary and fiscal policies implemented during the Covid-19 pandemic and various geopolitical crises. He expressed satisfaction at India’s robust GDP growth, moderating inflation, and record-high foreign exchange reserves, underscoring the stability of India’s financial sector and resilience of the external sector.

Finance Minister Nirmala Sitharaman lauded the RBI’s response to the pandemic, emphasizing its role in providing liquidity, promoting growth, and ensuring financial stability. She praised the RBI’s management of external imbalances and uncertainties, attributing India’s improved capacity to the professional management of the central bank.

Reflecting on the RBI’s journey, Das highlighted the transition from resource allocation to enabling the market economy. He outlined key reforms such as the Insolvency and Bankruptcy Code and flexible inflation targeting, which have strengthened the banking system and controlled consumer price pressures.

Sitharaman praised the collaborative efforts between the government and the RBI, citing the effective management of asset quality and the implementation of the Prompt Corrective Action framework as significant achievements.

Overall, the remarks from Governor Das and Finance Minister Sitharaman underscored the RBI’s commitment to fostering stability and growth in India’s financial sector, driving the nation towards economic prosperity.