In a recent statement, RBI Governor Shaktikanta Das assured the public of the central bank’s vigilance in supporting economic growth and managing inflation.
The government has tasked the RBI with maintaining consumer price index-based inflation at four percent, with a two percent allowable variation.
Speaking at a Tokyo seminar on RBI’s financial technology (FinTech) approach, Das highlighted its customer-centric focus.
He emphasized the commitment to better governance, effective oversight, ethical practices,
and risk management, encouraging fintech self-regulation through a Self-Regulatory Organization (SRO).
Das shared insights from the October Monetary Policy Committee (MPC) meeting, projecting retail inflation at 5.4 percent for 2023-24, lower than the 6.7 percent recorded for 2022-23.
While acknowledging a dip in consumer price index-based inflation in September, Das flagged the sensitivity of headline inflation to food price shocks.
Despite core inflation dropping to 1.70 percent from its peak in January 2023, Das maintained a cautious monetary policy stance.
The MPC sustained the repo rate at 6.5 percent in the October review, the fourth consecutive meeting without changes. The next MPC meeting is slated for early December.
Das lauded the success of Unified Payments Interface (UPI) in India’s fintech evolution, deeming it an international model.
He mentioned ongoing efforts to link UPI with faster payment systems of other countries, exploring possibilities with Japan for more efficient cross-border transactions.
On India’s economic performance, Das expressed satisfaction with its resilience amid recent challenges.
He credited policy measures, coupled with thoughtful monetary and fiscal policies, for sustaining growth and controlling inflation. However, he cautioned against complacency in the current uncertain environment.
