The Reserve Bank of India (RBI) has evolved significantly over the years with the initial focus being on allocating scarce resources during the planning era, it has now transformed into a crucial enabler for the market economy, Governor Shaktikanta Das said on Monday.

“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 allocation of scarce resources during the planning period, the Reserve Bank has transitioned into being an enabler for the market economy. We are a full-service central bank with our functions spanning multiple dimensions,” he said.

While speaking at the RBI@90, a program marking 90 years of the Reserve Bank of India, in Mumbai, Governor Das said over the years, the Reserve Bank has emerged as a symbol of stability, resilience, and commitment to the welfare of our citizens. This has been possible due to the contributions made by generations of Team RBI.

“As we move towards RBI@100, the Reserve Bank remains focused on ensuring a stable and strong financial system that would act as a bedrock for our country’s economic progress,” he said.

“The path-breaking structural reforms such as the enactment of the Insolvency and Bankruptcy Code (IBC) and the adoption of Flexible Inflation Targeting in the recent years, have helped us to deal with the challenges in the banking system and the task of maintaining price stability more effectively,” he said.

Talking about the rapid changes happening in the areas of technology, the governor said, given the rapid changes taking place in today’s world, especially in the areas of technology, innovation, business practices and growing complexities in the financial sector, the Reserve Bank is constantly evaluating the emerging trends and taking necessary policy measures to remain in sync with the evolving situation.

The governor said the well-calibrated and co-ordinated monetary and fiscal policies went a long way in shielding the Indian economy from shocks like Covid and global tensions, and helped us emerge even stronger than before.

“It is a matter of satisfaction that today our GDP growth is robust; inflation is moderating; the financial sector is stable; the external sector remains resilient; and the forex reserves are at an all-time high.”