RBI Governor Shaktikanta Das on Wednesday said that the e-rupee launch was a landmark moment in the history of currency in the country as it will transform the way business is done and transactions are conducted. He was addressing the Annual FIBAC 2022 organized jointly by the Federation of Indian Industry and Commerce(FICCI) and IBA, banking organizations in Mumbai.
India : A Story of Resilience – Inaugural Address by @DasShaktikanta Governor, Reserve Bank of India – November 02, 2022 – at the Annual FIBAC 2022 Conference Organised Jointly by FICCI and IBA, Mumbaihttps://t.co/O6RkVHOcxH
— ReserveBankOfIndia (@RBI) November 2, 2022
Das said that the RBI wants to solve all aspects of Central Bank Digital Currency (CBDC) before launch. He added that the central bank hopes to launch digitized Kisan Credit Card loans in a full-fledged manner by the calendar year 2023.
The RBI governor informed that last month a Pilot project was launched on Kisan Credit Card loans with end-to-end digitization. It is a digitized process for grant of loans and farmers need not repeatedly go to banks for sanction of the loans. On the inflation front, the RBI chief said the central bank is closely monitoring inflation trends and the effect of previous actions.
Das said that with monetary policy actions and policy changes due to a change in regime in the advanced countries, financial conditions have tightened across markets the world over and increased the financial stability risks.
He noted that under uncertainties, the Indian economy has been growing steadily drawing strength from its macroeconomic indicators and buffers. India today presents a picture of resilience and optimism for the world. On inflation, Das further said that domestic inflations remain elevated and the central bank is keeping a close eye on it. Financial conditions have tightened sharply across the markets and have accentuated financial stability risks.
“The current global economy is sailing in extremely turbulent waters. Despite humungous challenges, the Indian economy has progressed relatively well. I would like to impress upon the banks and businesses to remain focussed on reinforcing their resilience while continuing to grow and meet market demand. They should continuously assess the risk buildup, if any, sharpen governance and strive to maintain healthy levels of capital and other buffers. So far as the RBI is concerned, we remain committed to support and preserve macroeconomic and financial stability. Once again, it is a moment of ‘whatever it takes’,” he added.
Capital outflows have led to reserve losses, spiraling imported inflation, and currency depreciation, he added. The RBI governor maintained that Indian recovery and growth are more broad based. The fiscal and monetary policies have been balanced and RBI has prevented a downward turn in the economy.