Prime Minister Modi addressed a ceremony in Mumbai marking the Reserve Bank of India’s 90th anniversary. Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das attended the event. PM Modi highlighted the turnaround in the banking sector, emphasizing its profitability and record credit growth compared to a decade ago.
He elaborated on the government’s strategy, focusing on recognition, resolution, and recapitalization, including a significant capital infusion of Rs. 3.5 lakh crores into Public Sector banks. This effort, coupled with governance-related reforms and the implementation of the Insolvency and Bankruptcy Code, facilitated the resolution of loans amounting to approximately Rs. 3.25 lakh crores.
RBI Governor Das emphasized the central bank’s commitment to maintaining a stable and robust financial system, crucial for India’s economic advancement. He highlighted RBI’s evolution from resource allocation during the planning era to enabling a market economy.
Finance Minister Sitharaman highlighted the RBI’s role in anchoring inflation expectations through effective communication policies, as acknowledged by the Bank of International Settlements. She underscored RBI’s communication strategy in explaining the rationale behind its measures, fostering confidence and optimism, even during the pandemic.
Ahead of the ceremony, Governor Das praised RBI’s 90-year journey, highlighting its role in fostering stability, trust, and growth. He commended the collective efforts of past and present RBI teams, expressing dedication to continue the journey with greater commitment.
Established in 1935 based on the recommendations of the Hilton Young Commission, RBI operates under the Reserve Bank of India Act, 1934. It commenced operations on April 1, 1935, with Sir Osborne Smith as its inaugural Governor, responsible for functions such as currency issuance and banking services for banks. In 1937, the Central Office was relocated from Kolkata to Mumbai, marking a significant milestone in RBI’s history.
Overall, the commemorations underscored RBI’s pivotal role in India’s economic landscape, its journey of evolution, and its ongoing commitment to stability and growth.
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