Addressing his first press conference after assuming the charge of Reserve Bank of India (RBI) Governor, Sanjay Malhotra said, It’s a huge responsibility, and all decisions will be taken with public interest in mind.
“I will try to ensure policy continuity and stability and gain the trust,” he said. The Governor further added that he will continue to collaborate with formal financial inclusions.
“I will continue to uphold the legacy of the RBI, a 90-year old institution,and ensure the vision of Viksit Bharat”
He said that all businesses, people, need continuity and stability. “We will continue to uphold this value, this principle of stability.”
He also talked about the challenges posed by an ever-evolving global financial environment.
“We have to be alert and agile to take on these challenges,” he said, highlighting the need for the RBI to remain responsive to both domestic and international developments.
Sanjay Malhotra has taken charge as the 26th Governor of Reserve Bank of India for the next 3 years, and said it is an honour and responsibility to head this prestigious institution.
The Governor also celebrated the success of the Unified Payments Interface (UPI) saying, “UPI has made big waves, not only in our country but globally as well.” He also recognised the global impact of UPI.
Also Read: Who is Sanjay Malhotra? RBI’s new Governor replacing Shaktikanta Das
What lies ahead for the new RBI chief?
The first and foremost thing that Sanjay Malhotra will have to deal with is the inflation.
The crucial one will be the food prices, which have pushed India’s headline inflation beyond the RBI monetary policy committee’s (MPC) flexible target of 2 to 6%.
Also Read: New RBI governor Sanjay Malhotra faces tough tasks of balancing growth, inflation, and rupee stability
CPI inflation in India remains above the RBI’s upper tolerance limit, with the latest October figure reaching 6.21%, driven by high food inflation.
Another firefight is on the rupee front as the Indian unit is hitting record lows despite RBI rifling through its mammoth forex reserves to prop up the unit.
