Mumbai: Newly appointed RBI Governor Sanjay Malhotra on Wednesday said the central bank will maintain continuity and stability in policy matters by using technology more effectively to promote financial inclusion.
Addressing his first press conference after taking charge at the central bank, the IIT-Kanpur graduate said he would work toward further using technology to reduce costs and make financial services ubiquitous.
“Innovation will be key; we will also have to be cautious about risks it entails and must place requisite guardrails,” he remarked.
“I do believe that one of the most important roles of the central bank here is to spread financial inclusion. Financial inclusion is a huge responsibility. I travelled a lot in financial inclusion, making banks available at each nook and corner of the country, but still, more needs to be done,” Malhotra said.
Stressing the importance of wide consultations with other stakeholders, Malhotra said, “Every institution, including the RBI, needs to be conscious that we do not have a monopoly of knowledge. Consultation is another key pillar of our policy making.”
He said that the central bank will continue to interact with all segments, including financial regulators, state governments and the Centre, to continue the Reserve Bank’s legacy.
He highlighted the need to stay “alert and agile” in the wake of the current uncertainties in the global economic and political environment.
“As we have to be conscious of the fact that we do maintain continuity and stability, we cannot be stuck to it, and we have to be alert and agile to meet challenges,” Malhotra said.
Malhotra, an IAS officer of the 1990 batch, was Revenue Secretary in the Finance Ministry before his appointment as RBI Governor.
He has assumed office as the 26th Governor of the RBI and will serve a three-year term as the head of the central bank.
He faces the challenge of maintaining a fine balance between inflation control and promoting growth, as well as managing the rupee’s depreciation amid a strengthening US dollar.
A former Secretary in the Department of Financial Services, Malhotra played a key role in carrying out LIC’s record Rs 21,000 crore IPO and advancing public sector banking reforms. An IIT engineer, he also has a Master’s in Public Policy from the prestigious Princeton University in the US.
–IANS
