Reserve Bank of India Governor Shaktikanta Das said that e-rupee launch was a landmark moment in the history of currency in the country and it will transform the way business is done and the way transactions are conduct.
Speaking at FICCI’s Banking Conference, FIBAC 2022, Shaktikanta Das said that the RBI wants to iron out all aspects of Central Bank Digital Currency (CBDC) before launch.
Shaktikanta Das adds that the central bank hopes to launch digitise Kisan Credit Card loans in a full fledge manner by CY 2023.
Shaktikanta Das note that there is no target date for full fedge launch of the digital rupee.
In his address to the Indian bankers, Shaktikanta Das said that the price stability, sustain growth and financial stability need not be mutually exclusive.
Shaktikanta Das also note that the transparency is not compromise in any manner by not releasing letter to be written by RBI to government for missing inflation target.
Speaking at the conference, Shaktikanta Das said that with monetary policy actions and stances undergoing a regime shift in the advanced countries, financial conditions have tighten across markets and accentuate financial stability risks.
Shaktikanta Das note that in an uncertain environment, Indian economy has growing steadily drawing strength from its macroeconomic indicators and buffers.
Shaktikanta Das said that India today presents a picture of resilience and optimism for the world.
RBI chief, Shaktikanta Das said the central bank is closely monitoring inflation trends and the impact of previous actions.
Shaktikanta Das said that the RBI is seeing considerable improvement in sales of white goods in festive season.
Shaktikanta Das Said :
“In mine and the RBI’s view, price stability, sustained growth, and financial stability need not be mutually exclusive,”.
Also Shaktikanta Das adds that there is lots of speculation about the MPC’s 3rd November 2022 meeting.
Shaktikanta Das Said :
“We will prepare a report on and send it to the government,”.
RBI governor, Shaktikanta Das said that MPC’s resolution is meant for the entire economy and markets and citizens should know about the MPC’s decision.
Then, Shaktikanta Das adds that a letter to the government is sent under law.
Shaktikanta Das Said :
“I don’t have the privilege or authority or luxury to release it to the media before the addressee gets it… The contents of the letter will not be under the wraps forever. It will be release at some point… The first right of receiving the letter lies with the government,”.
Then Shaktikanta Das explain that if the RBI had start process of tightening earlier, what would have the counterfactual scenario?
Shaktikanta Das Said :
“We did not want to upset process of recovery. We want economy to safely reach the shores and then bring down inflation,”.
“There has a slippage in maintaining inflation target. But if we would have tighten earlier, the country would have paid a high cost for it.”
