- Wednesday, January 15, 2025
The new central bank governor emphasised that RBI will extensively use technology to further promote financial inclusion
By: Shajil Kumar
NEW RBI Governor Sanjay Malhotra on Wednesday said the central bank will maintain continuity and stability in policy matters, but emphasised on the need to remain “alert and agile” in the wake of the current global economic and political environment.
“As we have to be conscious of the fact that we do maintain continuity and stability, we cannot be stuck to it, and we have to be alert and agile to meet challenges,” Malhotra said in his first interaction as Governor with media.
In his brief statement, Malhotra, a career bureaucrat, also stressed that the central bank will continue to interact with all segments, including financial regulators, state governments and the Centre, to continue the Reserve Bank’s legacy.
“We do not have monopoly of all knowledge,” he said, while stressing on the importance of wide consultations with other stakeholders.
The former revenue secretary emphasised that RBI will extensively use technology to further promote financial inclusion.
Earlier in the day, Malhotra took charge as the 26th Governor of the Reserve Bank, replacing Shaktikanta Das who demitted office after six years.
When he arrived at the central bank’s headquarter this morning in Mumbai, where he was welcomed by senior RBI staffers.
The central bank confirmed Malhotra’s appointment through a post on the microblogging site “X” and also shared a few pictures.
Malhotra, an IAS officer of the Rajasthan cadre, comes at the helm of RBI at a very critical juncture, where growth and inflation balance has “unsettled” as per his predecessor.
GDP Growth declined to a seven-quarter low of 5.4 per cent in the September quarter while the October headline inflation was above the 6 per cent mark set for the central bank by the government.
Analysts are expecting the RBI to cut interest rates at the forthcoming policy review in February, and are of the opinion that Malhotra’s appointment “cements” the possibility.
Under Das, the Reserve Bank maintained a status quo on key rates for 11 consecutive meetings over nearly two years as it prioritised to tame inflation.
It also diagnosed the slow growth as a result of high inflation. (PTI)
