Reserve Bank of India (RBI) Governor Shaktikanta Das reflected on the rich history of the central bank spanning nine decades, during the commemoration ceremony marking 90 years of the RBI held in Mumbai on Monday.
In his address, Governor Das highlighted the pivotal role played by the institution in India’s economic advancement and its ability to adapt to changing circumstances. He stated, “The journey of reserve bank over the 9 decades has been one of efficient functioning and contribution to the nations’ progress.”
Governor Das emphasized the transition of the RBI from its initial role as a central bank focused on resource allocation during the planning era to its current position as a supporter of the market economy. He stressed the importance of structural reforms in enabling the RBI to address contemporary challenges, citing initiatives like the Insolvency and Bankruptcy Code and flexible inflation targeting.
He remarked, “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 added, “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.”
Governor Das also acknowledged the challenges posed by the COVID-19 pandemic and geopolitical tensions, commending the resilience of the Indian economy. He attributed this resilience to the well-coordinated monetary and fiscal policies implemented by the country, which helped shield the economy from external shocks and foster a robust recovery.
He concluded on an optimistic note, highlighting India’s strong GDP growth, declining 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 alignment with the evolving economic landscape.