Rama Krishna Sangem
Shaktikanta Das, the outgoing Governor of the Reserve Bank of India (RBI), concluded his six-year term on Tuesday, emphasising the importance of considering the broader economy when making critical financial decisions. Addressing a press conference, Das reflected on his tenure at India’s monetary authority, outlining key achievements and challenges that shaped his leadership.
“A governor keeps in mind the requirements of the wider economy as well,” Das remarked, referencing the central bank’s pivotal decisions during his term. He also stressed the importance of analysing situations critically rather than reacting impulsively to every piece of news.
5 priorities for the RBI moving forward
Das highlighted five key areas of focus for the central bank in the years ahead. They are:
1 Restoring the inflation-growth balance
“Restoring the inflation-growth balance is the most important task ahead for the Reserve Bank,” Das stated. e emphasised the complexities of operating in a changing global order shaped by shifting geopolitical dynamics. “In this environment, it is crucial to stay alert and agile in the face of challenges,” he said.
2 Restoring inflation- growth balance
“Restoring the inflation-growth balance is the most important task ahead for the Reserve Bank,” said Das. “We live in a changing world order, influenced by shifting geopolitical dynamics. In this environment, it is crucial to stay alert and agile in the face of challenges.”
3 Cybersecurity: A global concern
Das identified cybersecurity as a growing global challenge, particularly for central banks. He emphasised the RBI’s focus on mitigating these risks, stating, “This remains a continuing challenge for every central bank in the world.”
Highlighting the role of technology, Das noted the establishment of the RBI Innovation Hub in Bengaluru as a significant achievement. The hub supported key initiatives, including the development of the Central Bank Digital Currency (CBDC).
Das also spotlighted financial inclusion as a cornerstone of his tenure, crediting the Unified Payments Interface (UPI) for transforming access to banking services. “The Unified Lending Interface (ULI) and the growing success of UPI are true game-changers,” he said, adding that UPI had emerged as a global leader in financial inclusion.
4 Navigating turbulent times
Das’s tenure was marked by significant challenges, including the Covid-19 pandemic. The RBI implemented decisive measures, such as reducing the policy repo rate to a historic low of 4 per cent, to mitigate economic disruptions.
In May 2022, the Monetary Policy Committee (MPC) initiated interest rate hikes to curb inflation while maintaining economic growth. Under Das’s leadership, India achieved an economic growth rate exceeding 7 per cent over the last four years.
5 Prudent financial management
Das emphasised the importance of protecting taxpayers’ money and managing public sector banks responsibly. Citing the case of Yes Bank, he explained, “Our effort was always to ensure that taxpayer money was not burdened. Each issue requires a tailored solution.”
He noted that the RBI’s supervisory framework had significantly improved during his term, enhancing its ability to address systemic challenges. “Supervision has really improved,” he remarked.
Open to public office
When asked about his future plans, Das expressed his willingness to take on another public office role, saying, “I am open to taking public office.”
Reflecting on six years Das highlighted the RBI’s collaborative, consultative approach to decision-making. “In December 2018, I committed to upholding the professionalism, credibility, core values, and autonomy of the Reserve Bank. I have adhered to these principles while addressing challenges,” he said.
Earlier this year, the RBI reported its highest-ever dividend of Rs 2.11 trillion to the government, reflecting strong financial management under Das’s leadership.
A new era begins
Das’s tenure officially ends today, with Revenue Secretary Sanjay Malhotra set to succeed him as the 26th Governor of the Reserve Bank of India.
