RBI Governor Shaktikanta Das has emphasized the importance of explaining the banking system in simple language. He stated, “Our goal is to make RBI’s work understandable to the common person. We are trying to present RBI’s work in simpler terms so that everyone can understand the banking system.”
Discussion Topics
Shaktikanta Das discussed various topics including the Indian economy, rising inflation rates, GDP growth, the use of AI in banking, cybersecurity, and financial stability. He mentioned, “Many people don’t fully understand what RBI does. RBI affects everyone’s life… We want to ensure that RBI’s communication and outreach are effective.”
Challenges After COVID
Das talked about the challenges faced by the banking system after the COVID pandemic. He noted, “RBI started in 1935. We played a major role in UPI payments. We faced significant challenges during different waves of COVID and the Ukraine war. However, the government and RBI worked well together.”
RBI’s Role
Das explained that RBI’s main focus is on maintaining financial and monetary stability. He said, “We are a non-profit organization. We don’t provide profits or losses to the government but transfer surpluses.”
Inflation Rates
Regarding inflation, Das stated, “We never said inflation would fall below 4%. Our goal is to stay close to 4%. We need to be patient and wait for future data.”
Price Stability and Economic Growth
Das emphasized the need for price stability in the economy, saying, “Price stability gives consumers confidence and boosts investor trust. We also need to maintain financial stability as a regulator.”
Banking System Improvements
Das mentioned improvements in the banking sector’s governance over the past 5-6 years, including risk management and compliance culture. He added that RBI’s actions are corrective measures, not punishments.
Cybersecurity and AI
Das highlighted the importance of cybersecurity and the use of AI in banking. He said, “Cyberattacks are a growing threat. We are working on creating a public repository for digital loan apps and improving cybersecurity with banks and NBFCs.”
Fintech Innovations
Das discussed fintech regulations and relationships with fintech players. He noted that RBI’s fintech department regularly meets with fintech associations and announced a fintech SRO last year to act as an interface between RBI and fintech players.
Structural Liquidity
Das addressed concerns about structural liquidity, stating, “Banks need to actively manage liquidity and balance credit and deposit growth. Infrastructure bonds are being used to raise funds, which is positive.”
Future Agenda for RBI
Das concluded by saying that RBI has issued a future agenda to keep it prepared for the coming years. He praised the RBI team for their continuous efforts and teamwork.
