Sanjay Malhotra, the newly appointed Governor of the Reserve Bank of India (RBI), outlined his vision for the central bank after assuming office on Wednesday. Malhotra emphasized that his tenure would focus on policy continuity, financial inclusion, and innovation while addressing the evolving challenges of the global economy.
Reflecting on the RBI’s legacy, Malhotra acknowledged the institution’s significant responsibility and the contributions it has made over the years. “It is a huge responsibility,” he said, stressing the need for stability in policy frameworks. “Stability in policy is very, very important… Even in my previous role, we worked to ensure continuity in taxation, fiscal, and monetary policies. Businesses and individuals need continuity and stability rather than day-to-day changes.”
Malhotra highlighted the necessity of remaining agile in a rapidly changing world, given the complexities posed by geopolitical tensions, climate change, and economic uncertainties. “We cannot be stuck to continuity alone. While maintaining stability, we must remain alert and agile,” he said.
“We do maintain Continuity and stability. We cannot be stuck to it and we have to be alert and agile,” he added.
Reiterating the RBI’s commitment to financial inclusion, Malhotra noted the progress achieved so far but acknowledged the need for further collaboration with stakeholders. “There is still more to be done,” he said.
“We will work with regulators, governments, and other stakeholders to ensure that the benefits of financial inclusion reach everyone.”
RBI Governor Malhotra pointed to India’s success with the Unified Payments Interface (UPI) and its growing global recognition. “How we can further use technology to reduce costs and make financial inclusion more accessible and pervasive and innovation will be a key (priority).”
“Innovation will be key, but we must be conscious of the risks it may entail,” he said. “We will put in place requisite safeguards and guardrails to ensure that innovation thrives without unintended consequences.”
Malhotra stressed the importance of consultation in policymaking, emphasizing that expertise is not confined to any single institution. “Consultation will remain a key pillar of our policymaking process,” he said, pledging to continue the RBI’s practice of engaging with stakeholders to uphold public trust and ensure decisions align with the public interest.
Succeeding Shaktikanta Das, who led the RBI since December 2018 and played a pivotal role during the COVID-19 pandemic, Malhotra brings a wealth of experience in economic and financial matters to his new role. As the head of the RBI, he is expected to focus on maintaining inflation targets, fostering economic growth, and ensuring the resilience of India’s financial sector amid global challenges.
(ANI)
