Mumbai: Sanjay Malhotra took charge as the 26th Governor of Reserve Bank of India Wednesday, and promised to focus on deepening trust, growth and ensuring stability.
Malhotra, 56, takes over as the central bank governor at a critical time where inflation has shot above the comfort level, growth has declined to a 7-quarter low and rupee is at all-time low level against US dollar.
“I can assure that we will put in the best foot forward in public interest to deliver what the public of India looks forward to, which is trust, which is growth and which is a stable and certain policy,” he told reporters at his maiden interaction as a RBI Governor.
The career bureaucrat arrived at the RBI headquarters at the Mint Street around 1000 hours and completed formalities of taking charge in the presence of Deputy Governors M Rajeshwar Rao, T Rabi Sankar and Swaminathan J.
Michael Patra, Deputy Governor in-charge of the critical monetary policy function, was not present.
Malhotra said, “We are in a very dynamic world right now fraught with geopolitical tensions, climate change risks and political uncertainties”, and affirmed that the RBI will remain “alert and agile” to meet the challenges.
RBI is a prestigious institution which has done commendable work over its history courtesy the diligence and hard work of its staff members and senior officials, said Malhotra, specifically mentioning his predecessor Shaktikanta Das’ name.
“I will continue to uphold the legacy (of the RBI) and take it forward,” he affirmed, outlining his thoughts on the key focus areas.
On growth, he said it is a “huge responsibility” to ensure that the expansion in economic activity continues.
Although there was no explicit mention of inflation in his remarks, Malhotra stressed that the focus will be on “stability” and “trust”.
Policy certainty can be among the factors which can ensure stability, Malhotra said, adding that in his earlier assignment as the Revenue Secretary he focus was on stability in policy.
As an institution, he said, the RBI is what it is because of the “trust” it has earned for working with the public’s interest in mind, and added that it would be his endeavour to strengthen it.
Whatever decisions are taken will be done with public interest in mind, Malhotra said. He, however, declined to take any specific questions from the media.
Resorting to cricket analogies a favourite with his predecessor Das, Malhotra said he cannot start playing his shots on day one itself.
The new Governor said that he would respond to media questions after understanding various issues from RBI’s officers.
The next monetary policy review is scheduled for the first week of February, offering Malhotra nearly two months of time before he makes his maiden decision on interest rate and other important issues.
Malhotra, who till Tuesday was Revenue Secretary (1990-batch IAS officer of the Rajasthan cadre) in the finance ministry, said financial inclusion would be an important area for him, despite the successes achieved in the past.
RBI will collaborate with all stakeholders, including financial regulators, state governments and the Centre to deepen the benefits of financial inclusion, he said.
The central bank, he said, will also use the best that the technology has to offer in reducing costs and making banking services more accessible.
Innovation will be fostered and the RBI will put the necessary guardrails as it is cognizant of the risks involved, he added.
Observing that the RBI does not have a “monopoly” on all the knowledge and information, Malhotra said, he will continue to tread on the consultative approach in policy making.
PTI
