RBI flags climate risks to macro-economic stability, need for banks to act as key stakeholders

The Reserve Bank of India has expressed concern over the prospects of climate change having an overwhelming impact on macroeconomic stability, price stability, exchange rate stability and financial stability of nations and called on central bankers across the world to shed reservations about engaging on this subject.

- NIVEDITA MUKHERJEE

“The stark ominous reality is that the climate is striking back. Central banks cannot be immune or inactive any longer,” said Michael Debabrata Patra, Deputy Governor, RBI, in his inaugural address at the Annual Central Banking Seminar, a flagship event of the Federal Reserve Bank of New York.