RBI Marks 90 Years: Legacy of Monetary Stability and Financial Inclusion

As the Reserve Bank of India (RBI) marks 90 years of service, Prime Minister Narendra Modi lauded its professionalism and commitment in fostering the banking sector's profitability and credit growth. He attributed these achievements to his government's and the RBI's collaborative efforts, emphasizing the importance of clear policies, honesty, and coordination between monetary and fiscal policies.

The Reserve Bank of India: A Legacy of Monetary Stability and Financial Inclusion

Mumbai, India - Prime Minister Narendra Modi has hailed the Reserve Bank of India (RBI) for completing nine decades of service to the nation, emphasizing the central bank's unwavering commitment to professionalism and its pivotal role in India's economic progress.

Speaking at a ceremony commemorating RBI's 90th anniversary in Mumbai, Prime Minister Modi lauded the central bank's global recognition for its expertise and dedication. He highlighted the significant transformation of India's banking sector under his government's leadership and the RBI's collaborative efforts.

"In 2014, when I attended the 80th anniversary celebrations of RBI, the banking sector was facing severe challenges," Prime Minister Modi recalled. "Today, India's banking system is widely regarded as one of the most robust and sustainable in the world."

The Prime Minister attributed this remarkable turnaround to his government's unwavering commitment to clear policies, integrity, and unwavering determination. "When intentions are clear, policies are sound, decisions are well-informed, and outcomes are positive," he emphasized.

Prime Minister Modi stressed the crucial interdependence between monetary and fiscal policies in driving India's economic growth. "The monetary policy committee of the RBI has effectively targeted inflation, contributing significantly to macroeconomic stability," he noted.

The RBI has also spearheaded initiatives to enhance financial inclusion and ease of banking in India. "The Unified Payments Interface (UPI) has emerged as a globally renowned platform, facilitating seamless digital payments," Prime Minister Modi said. "The RBI is also actively exploring the potential of a central bank digital currency."

Reflecting on the central bank's remarkable journey, Prime Minister Modi emphasized the significance of economic self-reliance for India's future. "In the next decade, we must strive to become economically independent to mitigate external vulnerabilities," he urged.

Prime Minister Modi expressed confidence that the upcoming third term of the BJP-led NDA government will further accelerate India's economic progress. "We must prioritize policies that enhance our self-reliance," he stated.

"During the past 100 days, I have been preoccupied with electoral duties, but I urge you to utilize this time to formulate innovative policy ideas," Prime Minister Modi advised the RBI leadership. "Substantial responsibilities await you immediately following the swearing-in ceremony."

During the ceremony, Prime Minister Modi unveiled a commemorative coin marking RBI's 90th anniversary. Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das were also present at the event.

The Reserve Bank of India: A Historical Overview

Established in 1935 pursuant to the recommendations of the Hilton-Young Commission, the Reserve Bank of India is the central bank of India, governed by the Reserve Bank of India Act, 1934.

Since its inception on April 1, 1935, with Sir Osborne Smith as its first Governor, RBI has been entrusted with a wide range of responsibilities, including currency issuance, banking services to banks and the government, and the development of rural cooperatives and agricultural credit.

Over the years, RBI's role has expanded significantly to encompass monetary management, regulation and supervision of the financial system, management of foreign exchange reserves, currency issuance, regulation and supervision of payment and settlement systems, and developmental initiatives.

RBI's headquarters was shifted from Kolkata to Mumbai in 1937. Today, the central bank plays a pivotal role in shaping India's economic policies and fostering financial stability, contributing to the nation's continued economic growth and prosperity.