Palazhi Ashok Kumar mumbai

The Reserve Bank of India (RBI) is at the very centre of India’s incredible growth story, and it has not only evolved with the changing times but has been a key architect of India’s financial transformation, President Droupadi Murmu said on Tuesday.

The central bank has witnessed the whole journey of the country so far, from the time before Independence when India was suffering from widespread poverty to the time now when it is among the top economies in the world, Murmu said at RBI’s 90th anniversary commemoration ceremony here.

“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? Nobody else’s signature has that power. “Everyone needs that piece of paper to conduct their daily life.

A common man or woman has no direct interaction with RBI–except for its name printed on the currency notes in their pockets, but indirectly all their financial dealings, through banks and otherwise, are governed by the RBI. And they instinctively place their utmost faith in the financial system overseen by it. In the nine decades, the biggest achievement of the RBI is this trust,” President said. 

“From containing inflation and strengthening financial inclusion to maintaining monetary stability and enabling robust economic growth, the central bank’s role has been fundamental in shaping the nation’s economic destiny,” she underlined. “As the guardian of monetary and financial stability, RBI will play a defining role in this journey–ensuring a sound banking system, driving financial innovation, and safeguarding trust in our financial ecosystem.

The RBI earned this trust by steadfastly maintaining its mandate of price stability, growth, and financial stability. It has continuously adapted to meet the evolving needs of our growing nation. Its swift responses to key challenges, from economic liberalisation in the 1990s to the Covid-19 pandemic, highlight its resilience and adaptability. The RBI’s remarkable journey over the past 90 years, she said, has been closely aligned with the vision and policies of the government. This enduring partnership has been essential in navigating complex economic transitions, implementing critical financial reforms, and maintaining macroeconomic stability.