Outgoing RBI Governor Shaktikanta Das lists 5 key focus areas for central bank

Outgoing RBI Governor Shaktikanta Das on Tuesday reflected on his journey and outlined key challenges that lie ahead for the central bank.

In his final press conference, the RBI governor said, “I was fortunate to get this opportunity. I have tried my best to serve the institution and its policies in the best interest of the economy.”

Acknowledging that there are always new challenges for the central bank, Das identified five critical areas for the RBI's focus: restoring the inflation-growth balance, staying agile amid shifting geopolitical and geoeconomic dynamics, addressing cybersecurity challenges, harnessing technology through initiatives like the Central Bank Digital Currency (CBDC) and Unified Lending Interface (ULI), and advancing financial inclusion.

"First, so far as the RBI is concerned, restoring the inflation growth balance is the most important task ahead of the Reserve Bank. I'm sure the Team RBI under the leadership of the new governor will take it forward," Das said.

"Second, there's a changing world order. The entire geopolitical dynamics, geoeconomic dynamics is undergoing change. In this situation, it's always necessary to remain alert and agile. And I'm sure the RBI will certainly be at its best," he added.

On the issue of cybersecurity and its associated risks, Das said it is a big challenge for authorities not only in India but all over the world.

“In the last six years, and even earlier also, we have given a lot of attention to the issue of cybersecurity and dealing with cyber threats and challenges. That is a continuing task because new challenges are emanating,” the RBI chief said.

Das hailed the RBI’s strides in digital innovation, including the pioneering rollout of the central bank digital currency (CBDC) and the regulatory sandbox initiative.

“CBDC has a huge potential in the coming years. In fact, it is the future of currency,” he said.

Das asserted that the Unified Lending Interface (ULIP will play a transformational role in credit delivery to the bottom of the pyramid.

"Sitting outside, I would look forward for a nationwide rollout. I have absolutely no doubt in my mind that the RBI, with the cooperation of all central government department and agencies, and the state governments will do a nationwide rollout," he said.

The outgoing governor expressed confidence in the RBI’s ability to navigate future challenges under the leadership of his successor. “I convey my best wishes to the incoming governor, Shri Sanjay Malhotra,” he added.

He also noted that the perspective of the finance ministry and the RBI can differ at times, but during his tenure all such issues were resolved through internal discussions.

To a question on the criticism of the monetary policy, the governor said everyone is entitled to their views but as he looks at it, growth is impacted by multiplicity of factors, not just the repo rate.

India's economic growth slowed to near two-year low of 5.4 per cent in the September quarter of this fiscal year due to poor performance of manufacturing and mining sectors. The gross domestic product (GDP) had expanded by 8.1 per cent in the July-September period of the previous fiscal year.

"May the RBI grow even taller as an institution of trust and credibility. My best wishes to each one of you."