The Indian economy is “relatively better placed amid grim global scenario,” RBI Governor Shaktikanta Das on Friday said, adding that the “Indian rupee is holding up well relative to advanced and emerging market peers..”
“We have zero tolerance for volatile and bumpy movement of rupee,” Das said, adding, “RBI actions have helped in smooth movement of rupee.”
The rupee fell seven paise to 79.92 against the US dollar in opening trade on Friday.
“RBI has been supplying US dollars to the market to ensure adequate supply of liquidity,” the governor said.
Speaking at the inauguration of the Bank of Baroda Annual Banking Conclave 2022, “The future of banking would witness a major shift in customer’s choices and preferences with enhanced expectations from the banking industry.”
Das said, “The banking sector is going through a churning, the future of banking would witness a major shift in customer’s choices and preferences with enhanced expectations from the banking industry.”
“Each of the developments would present unique oppurtunities, and challenges to the existing and newer players.”
The RBI Governor added, “It has to be borne in mind that sometimes that the disruptions can be sudden that it is impossible to anticipate them.”
Talking about the future of the banking industry, Das said, “Banking beyond tomorrow would revolve around, a) the adoption of emerging technologies, customisation of products and services, enhanced business and process automation, b) development of suitable business models with strong governance frameworks, better information management, changes in the mode of working, building of enhanced resilience capabilities and more responsible societal, enivornmental role for the banks.”
The RBI Governer said, “The current inflation targeting framework has worked very well since its adoption in 2016.”
RBI’s decision on the rate hike, and liquidity always takes into consideration the growth objective, Das said.