RBI New Governor / As soon as the new governor arrived, he told what he would do; while leaving

RBI New Governor: A new chapter is going to start in the Reserve Bank of India (RBI) today. The term of the current governor Shaktikanta Das ends today, and from tomorrow Sanjay Malhotra will take over as the 26th governor of the central bank. Shaktikanta Das faced many economic crises in his six-year-long tenure, while Sanjay Malhotra's priority will be to take the economy to new heights.

Sanjay Malhotra: Signs of a new approach

Sanjay Malhotra clarified his priorities before becoming the governor and said that his aim would be to accelerate the pace of the Indian economy.

Emphasis on economic growth: Malhotra said that every possible step would be taken to increase the pace of GDP.

Holistic approach: He also said that before starting work in the new post, he would deeply understand the functioning of the RBI and take decisions keeping in mind all perspectives.

Emphasis on partnership: His image is coordinating and collaborative, which can be helpful in promoting better coordination between the central bank and the government.

Shaktikanta Das: Farewell and Experience

On the occasion of his farewell, Shaktikanta Das shared his views on several important issues.

Inflation control: Das said that controlling inflation is the biggest challenge for the RBI and his successor will have to pay special attention to it.

New technologies: He stressed the need to adopt new technologies such as cyber security and central bank digital currency (CBDC).

Financial inclusion: Das hoped to take forward initiatives like financial inclusion and Unified Lending Interface (ULI).

Challenges and priorities

The new governor will face many challenges in the context of India's economic situation:

Balancing inflation and growth: Maintaining economic growth while keeping interest rates balanced will be a big responsibility.

Managing global impacts: Global economic conditions and geopolitical tensions are affecting the Indian economy, which will require a strategic approach to deal with.

Pressure on repo rate: There is pressure to cut the repo rate to accelerate economic growth, which has to be handled in a balanced manner.

Impact of RBI policies

The Reserve Bank of India took several important steps during Shaktikanta Das' tenure:

Managing the COVID-19 crisis: Maintaining financial stability during the pandemic was his major achievement.

Monetary policy: He ensured that there was a balance between economic growth and inflation.

Shared vision: Das established better coordination between the Finance Ministry and the RBI, which accelerated policy decisions.

Sanjay Malhotra's challenging start

Sanjay Malhotra is taking over the reins of RBI at a time when there are uncertainties at both global and domestic levels.

Inflation: Controlling inflation and keeping prices stable will be his priority.

Economic reforms: He will promote structural reforms to support economic growth.

Interest rate policies: He will have to be cautious in his decisions in view of the increasing pressure to cut the repo rate.

Conclusion

The leadership change at the RBI is a crucial moment for the Indian economy. Shaktikanta Das strengthened the credibility of the RBI with his efficiency, and now Sanjay Malhotra faces the challenge of carrying forward this legacy.

In the years to come, his policies and leadership will determine whether the Reserve Bank of India will not only be able to face the current challenges but will also be able to establish new dimensions of economic growth.