RBI to focus on customer service, financial inclusion says RBI Gov
Governor Malhotra said the RBI’s adoption of new technologies and modern regulations will be guided by values of integrity, transparency, and commitment to public service.
Mumbai,
The Reserve Bank of India (RBI) governor Sanjay Malhotra on Tuesday said that the central bank will strive to improve customer services, strengthen customer protection and push for wider financial inclusion.
“The next decade will be crucial in shaping the financial architecture of our economy. We remain committed to expanding and deepening financial inclusion. We shall strive to foster a culture of continuous improvement in customer services and strengthening customer protection,” said Malhotra in his welcome address commemorating 90 years of the central bank.
Notably, as per the RBI’s Financial Inclusion Index, the extent of financial inclusion in the country stood at 64.2 in March 2024, up from 60.1 in March 2023, and 43.4 in 2017.
Governor Malhotra said the RBI’s adoption of new technologies and modern regulations will be guided by values of integrity, transparency, and commitment to public service. He said that the RBI’s role has expanded significantly beyond its initial mandate. “Today, we stand at the confluence of tradition and transformation, where the imperatives of price stability, financial stability, and economic growth intersect with rapid technological advancements, global uncertainties, challenges of climate change and increasing public expectations.”
He highlighted that the RBI remains fully prepared to meet all challenges and seize all opportunities to contribute proactively and vigorously to India’s economic progress. Meanwhile in an opinion piece co-authored with K Balasubramanian in a national daily, Malhotra opined that the stability of prices is important as inflation continues to erode the value of money. He said that while inflation hurts people, especially the poor, not all inflation is bad.
“Experts believe that a moderate level of inflation is healthy for economic growth. If inflation is too low, the economy faces stagnation risks. If it is too high, prices become unpredictable, making it difficult for consumers and businesses to plan and invest. We have chosen a target of 4 per cent with a band of 2 per cent for CPI inflation,” wrote Malhotra and Balasubramanian.
