RBI to pre-empt risk to India’s rise: Das

MUMBAI: RBI Governor Shaktikanta Das said India is one of the fastest growing major economies globally with a rising potential growth profile, and stressed the central bank remains committed to act early and decisively to prevent any build-up of risks.

In his foreword to the RBI’s 28th issue of the Financial Stability Report (FSR), Das said achieving durable price stability, ensuring medium-term debt sustainability, further strengthening financial sector resilience, creating new growth opportunities and promoting inclusive and green growth remain key policy priorities.

The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system.

Observing the global economy face multiple challenges, Das said the Indian economy exhibits macroeconomic resilience, with a robust financial system that is supporting its growth dynamics. “We remain alert and committed to act early and decisively to prevent any build-up of risks,” he said.

He also said that recent macroprudential measures taken by the central bank to curb lenders’ exuberance towards certain segments of retail loans underline its commitment to preserve financial stability without compromising availability of funds for productive requirements of the economy.

“India is one of the fastest growing major economies in the world with a rising potential growth profile,” Das said, and added the sharp rebound in growth is underpinned by sound macroeconomic fundamentals, robust domestic demand and prudent public policies.

Even as India confronts global headwinds and emerging challenges from technological disruptions, cyber risks and climate change, he said RBI’s endeavour will be to continue to fortify the financial system, promote responsible innovation and invigorate inclusive growth.

RBI and the other financial regulators remain invested in preserving financial stability and fostering a financial system that is resilient to shocks and supportive of growth, he added.