The Reserve Bank of India has played an appreciation-worthy role in the transformation of India’s banking system and the economy in the last ten years, Prime Minister Modi said while speaking at the central bank’s 90th anniversary event in Mumbai on Monday.
“When I attended RBI’s 80th birthday in 2014, the situation was completely different,” said Modi pointing to India’s twin balancesheet crisis, banking turmoil.
“India’s banking sector was troubled with challenges and problems, be it NPA, stability of the system and its future, everyone was filled with doubts. The situation was so bad that the PSBs weren’t able to give Indian economy the required push,” Modi reminisced.
However, he said, today the situation has evolved for the better.
“The banking system which was on the verge of going bust, is today seeing profits and is setting records when it comes to providing credit. A change like this is just 10 years was not easy. it happened because our policies, intentions and decisions were clear,” Modi said.
Going ahead, the RBI must think differently, Modi said. “Shaktikanta Das is an expert in this regard,” the PM said.
What does the RBI do?
The Reserve Bank of India was established in 1935 and is India’s central bank, also known as the lender of the last resort. It is governed by the Reserve Bank of India Act, 1934.Sir Osborne Smith served as the very first Governor of RBI when it began its operations on April 1, 1935.
Originally, the RBI was responsible for functions including the issuance of currency in the country. It has been offering banking services for banks and the Central government. It has also been involved in the development of rural cooperatives and agricultural credit in India.
The RBI’s role has expanded to cover monetary management, regulation and supervision of the financial system, management of foreign exchange, currency issuance, regulation and supervision of payment and settlement systems, and developmental roles over the years.
Appointed in 2018, Shaktikanta Das is the RBI’s current governor. Das’ tenure was extended till December 2024.
