RBI governor Shaktikanta Das says, "Inflation control is the biggest challenge for new RBI governor"

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The outgoing Governor of the Reserve Bank of India (RBI), Shaktikanta Das in his final speech stressed that the most crucial task facing the next RBI governor is bringing inflation back within the RBI target, ANI reported.

Looking back on his six-year tenure, Das highlighted the critical challenges ahead for the central bank and also showed confidence in his successor's leadership.

He said, "First, so far as the Reserve Bank is concerned, I think restoring the inflation-gross balance is the most important task ahead of the Reserve Bank, and I am sure the Team RBI, under the leadership of the new Governor, will take it forward".

Das also spoke about the strong and cooperative relationship that existed between the RBI and the Ministry of Finance throughout his tenure. He acknowledged that while differences of opinion between the two entities are natural, they were able to settle all of their conflicts through internal discussion, ANI reported.

He added, "Perspectives of Finance Ministry and RBI can differ at times, it happens world over, but in my tenure, we have been able to resolve all such issues through internal discussion".

Reflecting on the struggles he went through when he assumed office in 2018, Das recalled addressing issues related to the banking sector and liquidity management, ANI cited.

He emphasized the need for flexible inflation targeting and the necessity of striking a balance between economic growth and inflation control. "It has been my endeavor to adhere to these principles during my tenure," he said.

Das further talked about the rapidly changing global geopolitical and economic landscape, requesting the RBI to remain alert and adaptable.

"The global geopolitical and geo-economics dynamics are undergoing fast changes. In this situation, it is always necessary to remain alert and agile, and I am sure the RBI will certainly be at its best." he noted, expressing confidence that the central bank would continue to excel in addressing such challenges," he added.

Under Das's leadership, the RBI also made great progress in adopting new technologies. One significant accomplishment he mentioned was the creation of the RBI Innovation Hub in Bengaluru, which aims to promote innovation in the financial industry.

He added, "Our focus in the last six years has been to capitalize as much as possible on harnessing the benefits of new technology".

As he bids farewell, Shaktikanta Das's term will be remembered for its role in steering the Indian economy through difficult times, including the COVID-19 pandemic and global economic uncertainties, ANI cited.

Sanjay Malhotra, who is currently the Ministry of Finance's revenue secretary, has been named by the government to be the Reserve Bank of India's next governor. As per the Department of Personnel and Training official announcement on Monday, the appointment will take effect on December 11, 2024, and last for three years, ANI cited.

(With ANI inputs)