Outgoing RBI Governor Reflects on Growth Challenges and Future Prospects

Outgoing RBI Governor Shaktikanta Das highlights multiple factors affecting economic growth, not merely repo rates. Reflecting on his tenure during geopolitical upheavals, Das emphasizes resilience in India's economy. He urges a nuanced approach to rate-setting and emphasizes RBI's focus on ensuring financial stability without taxpayer bailouts.

In a farewell press conference, outgoing RBI Governor Shaktikanta Das addressed the factors contributing to India's economic growth slowdown, dismissing claims that they relate solely to the central bank's repo rate. Das underscored the need to restore the growth-inflation balance as a key objective for the Reserve Bank of India (RBI).

Highlighting challenges faced during his tenure, including the COVID-19 pandemic and geopolitical tensions, Das defended the Monetary Policy Committee's consistent decision to maintain interest rates. He stressed that monetary policy should be as fitting as possible under prevailing conditions, considering both current and future prospects.

Asserting the robustness of India's economy amidst global uncertainties, Das also discussed the importance of cybersecurity in the finance sector and dispelling notions of harshness towards fintech regulations. He reflected on successful interventions like the YES Bank rescue and expressed optimism for future developments such as the unified lending interface and digital currency.

(With inputs from agencies.)