‘Inflation control the biggest challenge for new RBI governor’: Shaktikanta Das

MUMBAI: Restoring inflation under the RBI target is the most important task ahead of the new RBI governor stated Shaktikanta Das, the outgoing Governor of the Reserve Bank of India (RBI), during his final address on Tuesday before stepping down from office.

Reflecting on his six-year tenure, Das outlined the critical challenges ahead for the central bank while expressing confidence in his successor’s leadership.

He said, “First, so far as the Reserve Bank is concerned, I think restoring the inflation-gross balance is the most important task ahead of the Reserve Bank, and I am sure the Team RBI, under the leadership of the new Governor, will take it forward”.

#WATCH | Outgoing RBI Governor Shaktikanta Das extends his wishes to the new Governor of RBI Sanjay Malhotra

He says, “Sanjay Malhotra has vast experience, I am sure he will do his best…”

(Source: RBI) pic.twitter.com/lqpzsSEQGG

— ANI (@ANI) December 10, 2024

Das also highlighted the strong and collaborative relationship between the RBI and the Ministry of Finance during his tenure. He acknowledged that while differences of opinion between the two entities are natural, they were able to resolve all issues amicably through internal discussions. He added, “Perspectives of Finance Ministry and RBI can differ at times, it happens world over, but in my tenure, we have been able to resolve all such issues through internal discussion”.

Reflecting on the challenges he faced when he assumed office in 2018, Das recalled addressing issues related to the banking sector and liquidity management. He stressed the importance of flexible inflation targeting and the need to balance inflation control with economic growth. “It has been my endeavor to adhere to these principles during my tenure,” he said.

Das further highlighted the rapidly changing global geopolitical and economic landscape, urging the RBI to remain vigilant and adaptable. “The global geopolitical and geo-economics dynamics are undergoing fast changes. In this situation, it is always necessary to remain alert and agile, and I am sure the RBI will certainly be at its best”, he noted, expressing confidence that the central bank would continue to excel in addressing such challenges.

#WATCH | Outgoing RBI Governor Shaktikanta Das says, “We adopted a consultative approach behind all decisions and all regulations that we took in the last six years. In many cases, we hold meetings with stakeholders and float discussion papers…The same approach was followed… pic.twitter.com/172GZXEbnu

— ANI (@ANI) December 10, 2024

Under Das’s leadership, the RBI also made significant strides in embracing technological advancements. He cited the establishment of the RBI Innovation Hub in Bengaluru as a key achievement aimed at fostering innovation in the financial sector. He added, “Our focus in the last six years has been to capitalize as much as possible on harnessing the benefits of new technology”.

As Shaktikanta Das bids farewell, his tenure is remembered for its role in steering the Indian economy through turbulent times, including the COVID-19 pandemic and global economic uncertainties.

The government has appointed Sanjay Malhotra, currently serving as the revenue secretary at the Ministry of Finance as the new Governor of Reserve Bank of India. This appointment is effective December 11, 2024, and will continue for three years, as per an official notification from the Department of Personnel and Training released on Monday. (ANI)