RBI governor Shaktikanta Das underscored the central bank’s commitment to proactive measures in response to contingencies. He said coordinating RBI’s monetary policy with govt’s fiscal policy has helped the economy.
The governor’s comments come as the central bank has taken a series of measures to curb lending in digital and unsecured loans, and barred some finance companies from certain lending activity — a change from its earlier practice of merely imposing a penalty.
In his speech at an event to commemorate RBI’s 90th anniversary, Das highlighted the central bank’s evolution from a resource allocator during the planning era to a full-service central bank in a market economy. He said that the “well-calibrated and coordinated monetary and fiscal policies between RBI and central govt have shielded the economy from the twin shocks of the pandemic and ongoing geopolitical hostilities”.
“It is a matter of satisfaction that today our GDP growth is robust, inflation is moderating, financial sector is stable, the external sector remains resilient, and the forex reserves are at an all-time high,” Das added.
“It has been our endeavour to promote a financial sector that is robust, resilient and future-ready. 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 deal more effectively with the challenges in the banking system…,” said Das.