Evolution in the Reserve Bank of India, as an institution, has been closely intertwined with the development of the Indian economy, Governor Shaktikanta Das said on Monday.
Speaking at the event to mark the RBI's 90th anniversary at Mumbai, Das said that the RBI's endeavor is to promote financial sector that is robust, resilient and future-ready.
"From being a central bank primarily concerned with allocation of scarce resources during the planning period, the Reserve Bank has transitioned into being an enabler of market economy," he said.
Das flagged the enactment of insolvency and bankruptcy code and adoption of flexible inflation targeting in 2016, which helped the central bank maintain price stability in the financial system more effectively.
Moreover, the governor highlighted that the RBI is constantly evaluating the rapid changes in technology, innovation, business practices and growing complexities in the financial sector across the world. "... RBI is evaluating emerging trends and taking necessary policy measures to remain in sync with changing times," Das said.
India's "well-caliberated and coordinated" monetary and fiscal policies shielded the economy from global turmoil arising from Covid-19 and geopolitical developments in the recent years, he said.
Consequently, India's GDP growth has turned robust, with a moderation in inflation and stability in financial sector, Das said. While the country's external sector remains resilient, foreign exchange reserves stand at an all-time high of $642.63 billion as on March 22.
"Over the years, the Reserve Bank has emerged as a symbol of stability, resilience, and commitment to the welfare of its citizens." Das concluded. "As we move towards RBI@100, the Reserve Bank remains focused at ensuring a stable and strong financial system that would act as a bedrock for our country's economic progress."
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