Celebrating 90 Years of RBI: PM Modi Lauds RBI's Dedication and Expertise

The ceremony marking RBI's 90 years underscored its significant contributions to India's banking sector and economic progress, with government officials and RBI leadership acknowledging its legacy and ongoing commitment to stability and growth.

Key Figures in Attendance:

• Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das attended the ceremony in Mumbai marking 90 years of the Reserve Bank of India (RBI).

• Prime Minister Modi delivered an address, highlighting significant achievements and reforms in the banking sector over the past decade.

Government's Banking Sector Strategy:

• PM Modi emphasized the government's strategy of "recognition, resolution, and recapitalization" to address the banking sector's financial stress a decade ago.

• A capital infusion of Rs. 3.5 lakh crores was made into Public Sector Banks, along with governance-related reforms.

Impact of Insolvency and Bankruptcy Code (IBC):

• PM Modi noted the success of the Insolvency and Bankruptcy Code (IBC) in resolving loans totaling around Rs. 3.25 lakh crores.

• The IBC facilitated the resolution of stressed assets, contributing to the improvement of the banking sector's health.

Reserve Bank of India (RBI) Role in Economic Stability:

• RBI Governor Shaktikanta Das reaffirmed the central bank's commitment to ensuring a stable and strong financial system.

• He highlighted RBI's evolution from resource allocation during the planning period to enabling a market economy.

RBI's Communication Policy:

• Union Finance Minister Sitharaman cited the Bank of International Settlements' acknowledgment of RBI's significant role in anchoring inflation expectations.

• RBI's communication policy, including forward guidance, helped build confidence in the economy, particularly during the pandemic.

Governor's Message:

• Ahead of the event, RBI Governor Shaktikanta Das expressed pride in RBI's 90-year journey, emphasizing its role in stability, trust, and growth.

• He commended the efforts of the entire RBI team, past and present, in achieving these milestones.

Historical Background of RBI:

• Established in 1935 based on the recommendations of the Hilton Young Commission, RBI is India's central bank.

• Governed by the Reserve Bank of India Act, 1934, RBI began operations on April 1, 1935, with Sir Osborne Smith as its first Governor.

• Initially headquartered in Kolkata, the Central Office of RBI was later shifted to Mumbai in 1937, where it continues to operate.

Legacy and Contribution:

• Over its 90-year history, RBI has played a pivotal role in the Indian economy, overseeing functions such as currency issuance and providing banking services for banks.

• Its contributions have been instrumental in shaping India's financial landscape and supporting economic growth.