The Reserve Bank of India (RBI) has been at the centre of India’s growth story since it’s inception in 1935 and has emerged as one of the most critically important institutions in the nation, President Droupadi Murmu said at the RBI’s 90th anniversary commemoration ceremony today.
“I have no hesitation in saying that the RBI has emerged as one of the most critically important institutions in the nation. Is it not less than a miracle that a piece of paper becomes fiat money when it bears the RBI governor’s signature?” she said.
India’s central bank earned public trust by maintaining its mandate of price stability, growth, and financial stability over the years, she said. It has continuously adapted to meet the evolving needs of the growing nation. The RBI’s responses to key challenges, from economic liberalisation in the 1990s to the Covid-19 pandemic, highlight its resilience and adaptability.
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“In an increasingly globalising world, it has also ensured that India’s financial system remains resilient in the face of any adverse international trends,” Murmu said.
By establishing institutions such as the NABARD, IDBI, SIDBI, and National Housing Bank, the central bank provided essential support for agriculture, small businesses, and housing. Initiatives like the Lead Bank Scheme also laid the foundation for expanding banking reach, ensuring that economic growth is inclusive and widespread.
Further, by introducing the Unified Payments Interface (UPI), the RBI has enabled instant, low-cost transactions and deepened financial inclusion. Moreover, the RBI has nurtured a vibrant fintech ecosystem. To be sure, the RBI has already recognized FACE as the self-regulatory organisation for the fintech sector.
However, with the rapid advancement of technology, the risk of financial fraud and cyber threats is increasing, the president said. This growing concern demands constant vigilance, and the RBI has taken proactive measures to strengthen safeguards and ensure a secure banking environment.
“As the guardian of monetary and financial stability, the RBI will play a defining role in this journey – ensuring a sound banking system, driving financial innovation, and safeguarding trust in our financial ecosystem,” she said.
