 "RBI, Reserve Bank of India")
From positioning itself as a model central bank for Global South to deepening financial inclusion and internationalisation of the rupee, the Reserve Bank of India (RBI) has unveiled a roadmap for its centenary year, outlining key goals aimed at enhancing the country’s footprint across the world.
India’s central bank entered the 90th year of its operations on April 1 this year.
“As the Reserve Bank approaches its centenary year, RBI@100, it will gear up even more to remain future-ready for India’s fast-growing economy,” said RBI Governor Shaktikanta Das while announcing the review of the monetary policy.
He said that the central bank has drawn up strategies for the next decade, which include policy actions to position the RBI as “a model central bank of Global South”.
Das appealed to observers of the Indian economy and financial system to closely examine these action plans. “This is not a static document as we are living in a dynamic world. Our endeavour will be to continually update it as may be required,” he said.
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The RBI@100 document outlines 14 key aspirational goals. These range from reviewing the Monetary Policy Framework to address the balance between price stability and economic growth from an emerging market economy (EME) perspective, to safeguarding users against payment frauds.
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There is an aim to refine monetary policy communication and address spill-overs to EMEs from private and public debt overhang in systemically important economies.
As part of the globalisation of the Indian financial sector, financial sector reforms will be undertaken to expand domestic banking in line with national growth, and position 3-5 Indian banks among the top 100 global banks in terms of size and operations.
The RBI also plans to deepen and modernise financial markets, institutions, and infrastructure, and support the International Financial Services Centres Authority (IFSCA) to make GIFT City a leading international financial centre.
To safeguard users against payment frauds, the banking regulator plans to widen and deepen consumer awareness, and make payment systems safer and more secure. It also plans to identify and implement solutions for proactive prevention and quick redress of frauds.
Furthermore, the central bank intends to deepen and universalise digital payment systems by phased implementation of Central Bank Digital Currency (e - Rupee), and internationalise India’s payment systems – UPI/RTGS/NEFT.
The RBI also plans to make its supervision of regulated entities a global model, deepen financial inclusion, expand credit availability, liberalise the capital account, and internationalise the Indian rupee.
The bank also aims to set up a financial sector cloud infrastructure, ensuring transformational shifts in data collection, processing and storage, and develop a secure global financial messaging hub.
