“If we consider this as a achievement, we believe that the role of the RBI has significantly exceeded the initial goals,” he said at the final ceremony of the 90th anniversary of the RBI on Tuesday.
Before checking monetary policy, the Reserve Bank of India announced that the banking system will deliver 80,000 rupees through Open Market Operations. According to RBI, this initiative improves the proper cash in the banking system. The announcement by Omo states that the reserve bank will keep an eye on the increasing cash and the changing market conditions to assess the right conditions.
This step by RBI is regarded as a guarantee of reducing political interest rates for banks. Economic experts believe that the main goal of the Reserve Bank is to maintain appropriate cash register in the banking system, and the purchase of OMO is an indication of this plan.
Rbis focus on liquidity
According to a Business Standard Report, the chief economist of IDFC First Bank, Gaura sen Gupa, says that past situations show that the change only takes place if the liquidity between RS 1 Lakh Crore and 2 Lakh Crore is. Despite this conviction, RBI can slow down these activities due to its dividend.
She also said that the steps of RBI show that it is committed to ensuring adequate liquidity for changes.
In the meantime, the governor of RBI, Sanjay Malhotra, mentioned the commitment of the central bank to strengthen consumer protection and to make the regulatory framework flexible in order to increase a balance between financial stability and efficiency.
RBI’s governor said – the next decade is important
At the final ceremony of the 90th anniversary of RBI on Tuesday, he said: “If we consider this as an achievement, we believe that the role of the RBI has significantly exceeded the initial goals.” He said: “Today we are at the time of tradition and change, where the imperative of price stability, financial stability and economic growth are combined with rapidly growing technologies, global uncertainties, challenges of climate change and increasing public expectations.” The governor said that the next decade will prove to be important for the design of the financial structure of the Indian economy. RBI is obliged to increase financial inclusion. He said: “We will try to promote a culture of continuous improvement in customer service and the strengthening of consumer protection. We will strive to make our regulatory framework flexible by reconciling the interests of financial stability and efficiency. We will continue to support technology and innovation. We will remain vigilant, flexible and visionary.”
