RBI IS CENTRAL TO THE COUNTRY'S ECONOMY

APART FROM DECIDING INTEREST RATES, THE CENTRAL BANK WIELDS HUMONGOUS INFLUENCE ON VARIOUS ASPECTS OF FINANCE AND ECONOMY, WHICH IS WHY THE RESERVE BANK OF INDIA GOVERNOR'S POSITION IS SUCH A BIG DEAL

- Sunitha Natti @Hyderabad

HE Reserve Bank of India (RBI) is widely known as the lord of interest rates. But besides rate decisions, what's less known is that the central bank wields unmatched influence on various aspects of finance and economy in general. This, in turn, puts a premium on the Governor's job, which has remained unparalleled since RBI's inception in 1935.

Till date, RBI has had 25 governors overseeing banking regulation and monetary policy, and on December 11, former revenue secretary Sanjay Malhotra took over as its 26th Governor. In his first media interaction, Malhotra vowed price and growth stability, but his brief, like his predecessors, goes much beyond chief concerns like inflation and a weakening economy.

While formulating, implementing and monitoring monetary policy or anchoring headline inflation to the 4% target gets the spotlight, the central bank undertakes some other crucial functions such as regulating and supervising financial entities.