RBI has huge responsibility in ensuring India’s growth continues, says Governor

The Reserve Bank of India (RBI) has a huge responsibility in ensuring that the country’s economic growth of the country continues going ahead, newly appointed Governor of the central bank Sanjay Malhotra said in his address today.

“The RBI, in its 90^th year, has adopted the theme of stability, trust and growth. All these three are very apt pillars to work on,” the governor said on his first day in office as RBI chief.

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“These three broad themes are very pertinent as this is still an economy that needs to develop as we are entering ‘Amrit Kaal’ and to realise the vision of ‘Vikasit Bharat’ by 2047. There is a huge responsibility we have in ensuring that the growth that this country has continues,” he added.

India’s real GDP growth declined to a seven-quarter low of 5.4 per cent in Q2FY25, compared to 6.7 per cent during the April-June quarter and 8.1 per cent during the corresponding quarter of the last fiscal. The RBI’s monetary policy committee (MPC) subsequently lowered GDP growth projection for FY25 to 6.6 per cent from 7.2 per cent.

Top priorities

Malhotra said earning people’s trust and ensuring economic stability would be the top priorities of the central bank. However, while stability is important, stakeholders must be aware of the constantly evolving and changing times.

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“This world is dynamic, with geo-political tensions, the impact of climate change and political uncertainty around the world. As with other organisations, change is the only constant. We must be conscious of the fact that while we maintain continuity and stability, we cannot be stuck to it and we have to be alert and agile to meet these challenges while we maintain a policy continuity,” he said.

The governor also batted for using technology to optimise cost and further deepen financial inclusion. He said while all institutions, including the RBI, have huge knowledge, stakeholders must be conscious that only one institution does not have a monopoly of all knowledge.

“Information, knowledge and expertise are available outside as well, whether internationally or nationally,” he said, adding that consultation is a key pillar of policy making.