RBI Governor Shaktikanta Das, Digital Rupee Launch: The Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday 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 conducted.
Speaking at FICCI’s Banking Conference – FIBAC 2022, Das said that the RBI wants to iron out all aspects of Central Bank Digital Currency (CBDC) before launch. He added that the central bank hopes to launch digitised Kisan Credit Card loans in a full fledged manner by CY 2023.
He noted that there is no target date for full fedged launch of the digital rupee.
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In his address to the Indian bankers, Das said that the price stability, sustained growth and financial stability need not be mutually exclusive. he also noted that the transparency is not compromised in any manner by not releasing letter to be written by RBI to government for missing inflation target.
Speaking at the conference, Das said that with monetary policy actions and stances undergoing a regime shift in the advanced countries, financial conditions have tightened across markets and accentuated financial stability risks. He noted that in an uncertain environment, Indian economy has been growing steadily drawing strength from its macroeconomic indicators and buffers. He said that India today presents a picture of resilience and optimism for the world.
On the inflation front, the RBI chief said the central bank is closely monitoring inflation trends and the impact of previous actions. He said that the RBI is seeing considerable improvement in sales of white goods in festive season.
“In mine and the RBI’s view, price stability, sustained growth, and financial stability need not be mutually exclusive,” he said.
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Das added that there is lots of speculation about the MPC’s November 3 meeting. “We will prepare a report on and send it to the government,” he said.
The RBI governor said that MPC’s resolution is meant for the entire economy and markets and citizens should know about the MPC’s decision. However, he added that a letter to the government is sent under law.
“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 released at some point… The first right of receiving the letter lies with the government,” he said.
Das explained that if the RBI had started process of tightening earlier, what would have been the counterfactual scenario?
“We did not want to upset process of recovery. We wanted economy to safely reach the shores and then bring down inflation,” he said. “There has been a slippage in maintaining inflation target. But if we would have tightened earlier, the country would have paid a high cost for it.”
-with PTI inputs
