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Emerging challenges for RBI
April 02, 2025
|Business Standard
The central bank will need to keep adapting
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The Reserve Bank of India (RBI) this week completed 90 years. Governor Sanjay Malhotra in a column in The Times of India on Tuesday highlighted some of the functions of the RBI and how it was preparing for the future.
This significant milestone in the life of the central bank offers an opportunity to discuss the kind of challenges it may face in the coming years. The shape of the Indian economy has changed significantly over the past few decades with increasing engagement with the global economy. As a result, the demands on the central bank have also changed. The RBI, to be fair, has adapted well to serve the needs of a rapidly growing economy. Aside from occasional differences, which is normal in a modern economy, the government has also done its bit to support the central bank. The government, for instance, got the RBI Act amended to enable the adoption of flexible inflation targeting in 2016, which has served India well.
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