RBI strengthening financial system amid challenges: Governor Malhotra

The Reserve Bank of India (RBI) is working to improve the financial system by expanding access, improving efficiency, and strengthening resilience in a changing economic landscape, said Governor Sanjay Malhotra on Tuesday.

“We at the Reserve Bank remain fully prepared to meet all challenges and seize all opportunities,” he said at the 90th commemoration ceremony of the central bank in Mumbai.

“As we mark this milestone, we recognise that the Reserve Bank's role has expanded significantly beyond initial mandate. Today, we stand at the confluence of tradition and transformation where the imperatives of price stability, financial stability and economic growth intersect with rapid technological advancements, global uncertainties, challenges of climate change and increasing public expectations.”

Malhotra underlined that the next decade will be crucial for the financial architecture of the Indian economy. For financial inclusion, more than 551 million bank accounts have been opened. According to the RBI's Financial Inclusion Index, the extent of financial inclusion in the country stood at 64.2 in March 2024, up from 60.1 in March 2023, and 43.4 in 2017. The index is based on three sub-indices: access, quality, and usage.

“It will be our endeavor to optimise our regulatory frameworks by balancing the interests of financial stability and efficiency.” Malhotra has earlier said the RBI will strive to strike the right balance between the benefits and costs of every regulation.

“We will continue to support technology and innovation. We shall remain vigilant, adaptive and forward-looking”, he said, adding that the central bank will collaborate with all stakeholders, governments and financial sector regulators, among others.

The RBI’s adoption of new technologies and modern regulations will be guided by values of integrity, transparency, and commitment to public service.

According to Malhotra, the journey ahead for RBI demands continuous adaptation and agility, fresh thinking and innovation, collaboration and coordination and “unwavering commitment” to excellence and perfection.

“We at the Reserve Bank remain fully prepared to meet all challenges and seize all opportunities”, he said, adding that the trust that the people’s trust is the RBI’s greatest asset and it is determined to preserve it.