PM Modi addressed a ceremony to mark 90 years of the Reserve Bank of India in Mumbai today while Union Finance minister Nirmala Sitharaman and RBI Governor Shaktikanta Das were in attendance. PM Modi said, “A decade ago banking sector was in deep financial stress, but now banks are profitable and credit growth is at record level.”
At the event, RBI Governor said that the central bank “remains focused on ensuring stable, strong financial system that would act as a bedrock of India’s economic progress. RBI’s evolution as an institution has been closely intertwined with the development of the Indian economy. From being a central bank primarily concerned with the allocation of scarce resources during the planning period, the RBI has transitioned into being an enabler for the market economy.”
At the ceremony, Nirmala Sitharaman said,” The Bank of International Settlements has mentioned the significant role played by RBI in anchoring inflation expectations using communication policy. Apart from forward guidance, it (communication policy) was used to explain the rationale for measures taken by RBI. Thus, in the economy, confidence was built. Optimism has been held up during the pandemic, BIS said.”
Watch PM Modi’s wish for RBI
Ahead of the event, RBI Governor Shaktikanta Das said in a post on X (formerly Twitter), “RBI enters its 90th year today. It has emerged as an institution which stands for stability, trust and growth. Many congratulations to the entire Team RBI, past and present for making this possible. Let us continue the journey with even greater dedication.”
More about RBI and its history
RBI- nation’s central bank- was established in 1935 following recommendations of Hilton Young Commission. It is governed by Reserve Bank of India Act, 1934 and it began operations on April 1, 1935 with Sir Osborne Smith as the first Governor, responsible for functions such as currency issuance, banking services for banks. In 1937, the Central Office of the Reserve Bank was shifted from Kolkata to Mumbai.
Over the years, RBI’s role expanded to monetary management, regulation and supervision of financial system, management of foreign exchange, currency issuance, regulation and supervision of payment and settlement systems.
