Inflation is moderating, financial sector is stable & foreign reserves are at an all-time high: RBI Guv

RBI Governor Shaktikanta Das emphasized the Reserve Bank of India's evolution into a vital facilitator for the market economy during the RBI@90 event commemorating the central bank's 90 years of service. Das highlighted the RBI's transition from its initial role of resource allocation during the planning era to becoming a cornerstone of the market economy.

"Institutional evolution has been intrinsic to the Indian economy's development, with the RBI playing a pivotal role," remarked Das. He underscored the RBI's transformation into a comprehensive central bank, with functions extending across various dimensions to promote a robust and future-ready financial sector.

The governor said It is a matter of satisfaction that today our GDP growth is robust, inflation is moderating, financial sector is stable, external sector is resilient, and foreign reserve is all time high. This has been possible due the contribution of generations of team RBI.

Das pointed out key reforms like the enactment of the Insolvency and Bankruptcy Code (IBC) and the adoption of flexible inflation targeting, which have empowered the RBI to effectively address challenges within the banking system and maintain price stability.

In reaffirming the RBI's commitment to ensuring a stable financial system, Das highlighted the resilience displayed amidst the challenges posed by the Covid-19 pandemic and geopolitical tensions. He credited well-calibrated monetary and fiscal policies for shielding the Indian economy and fostering resilience, leading to robust GDP growth, moderating inflation, stability in the financial sector, resilient external sectors, and record-high forex reserves.

RBI also issued a new coin to commemorate the special day.

On the occasion, alongside RBI Governor Shaktikanta Das and Union Finance Minister Nirmala Sitharaman, Maharashtra CM Eknath Shinde and Deputy CM Devendra Fadnavis were also present at the event.

Established in 1935, the RBI functions as the nation's central bank, operating under the regulatory framework of the Reserve Bank of India Act, 1934, and the recommendations of the Hilton Young Commission.

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