RBI working to improve financial system amid changing economic landscape: Sanjay Malhotra

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

Speaking at the closing ceremony of the commemoration of the 90th year of the RBI, he said, “As we mark this milestone, we recognise that the RBI’s role has expanded significantly beyond its initial mandate.”

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“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.”

“We shall strive to foster a culture of continuous improvement in customer services and strengthen consumer protection. It will be our endeavor to optimise our regulatory frameworks by balancing the interests of financial stability and efficiency. We will continue to support technology and innovation. We shall remain vigilant, adaptive and forward-looking,” he said.

The Governor emphasised that the RBI would continue to collaborate effectively with all stakeholders, governments and financial sector regulators, among others.

The RBI will do everything that is required to improve the financial system by expanding its access, enhancing its efficiency, and strengthening its resilience in an evolving economic landscape, he said.

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

The journey ahead for RBI demands continuous adaptation and agility, fresh thinking and innovation, collaboration and coordination, and “unwavering commitment” to excellence and perfection, he said.

He highlighted that the RBI remains fully prepared to meet all challenges and seize all opportunities to contribute proactively and vigorously to India’s economic progress.

Notably, as per 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.