Speeches & Media Interactions

Participants from the RBI: Shri Shaktikanta Das – Governor, Reserve Bank of India Dr. Michael D. Patra – Deputy Governor, Reserve Bank of India Shri M. Rajeshwar Rao – Deputy Governor, Reserve Bank of India Shri T. Rabi Sankar – Deputy Governor, Reserve Bank of India Shri Swaminathan J. – Deputy Governor, Reserve Bank of India Dr. O. P. Mall – Executive Director, Reserve Bank of India Dr. Rajiv Ranjan – Executive Director, Reserve Bank of India  Moderator: Shri Yogesh Dayal – Chief General Manager, Reserve Bank of India  Yogesh Dayal: Good afternoon everyone. Hello and welcome to the First Policy of 2024-25. Today with us we have Governor, Shri Shaktikanta Das, Deputy Governors, Dr. M.D. Patra, Shri M. Rajeshwar Rao, Shri T. Rabi Sankar, Shri Swaminathan J., and two Executive Directors, Dr. O. P. Mall and Dr. Rajiv Ranjan. So, as is customary, I would request the Governor to make some opening remarks and then we will go for Q&A.  Shaktikanta Das: Namaskar. I guess I will not be off the mark if I say that the policy overall is on expected lines. So, it demonstrates, I think, the Reserve Bank, the market participants, the market players and perhaps, the media and analysts and all, every stakeholder, thinking is at the moment, well aligned so far as Monetary Policy is concerned. But having said that, I just want to make five observations:

From fragile five to top five, the Indian economy is now enjoying a pedestal positioning. Growth is headed in the right direction, inflation is coming under check, the NPA cycle is weak, and fresh capital formation has started. The Reserve Bank of India Governor and his team have made the impossible look easy. The Indian financial system is now resilient despite all the shocks. But, are the problems of yesterday behind us or will they haunt us? What about global external shocks and the preparedness of the Indian financial system? To get all these answers, I have with me the man of the moment, Mr. Shaktikanta Das, Governor of the Reserve Bank of India.

Good afternoon and welcome to this Press Conference after the Central Board Meeting where the FM addressed the RBI Central Board.  Also, we had the launch of UPI today in two countries. Before we go ahead with the questions, I will request the Governor to give his Opening Remarks

Participants from the RBI: Shri Shaktikanta Das – Governor, Reserve Bank of India Dr. Michael D. Patra – Deputy Governor, Reserve Bank of India Shri M. Rajeshwar Rao – Deputy Governor, Reserve Bank of India Shri T. Rabi Sankar – Deputy Governor, Reserve Bank of India Shri Swaminathan J. – Deputy Governor, Reserve Bank of India Dr. O. P. Mall – Executive Director, Reserve Bank of India Dr. Rajiv Ranjan – Executive Director, Reserve Bank of India

Shaktikanta Das: India today deserves a very much more serious look because of all that is happening in India. The interest this time around in India is genuine. There is a lot of International confidence on the Indian growth story, on the technology story built around India, on the growth prospects of India, and the stability that is the macroeconomic and financial sector stability that India offers. So, my message if you see it in that sense is that we need to really step back and look at the business opportunities in India because this is the right time to get into the Indian business ecosystem.

Shereen Bhan: Welcome to the CNBC-TV18 Special Lunch. We are coming to you live from Davos 2024. You have seen a slew of headlines here on CNBC-TV18 and joining me now is the RBI Governor Shaktikanta Das. Mr. Das, always a pleasure. Thank you so much for joining us here on CNBC-TV18. You are quite the envy here of everyone in Davos. Mr. Das, I was looking at a press conference that you were doing a few days ago when you arrived in Davos. Many were almost saying that thewere feeling jealous of the position that you find yourself in.

Vishnu Som: One of the most important announcements which have been made over the last couple of days at the World Economic Forum and on the sidelines here in Davos, Switzerland, is the India Growth Story. There is nobody better placed to talk about growth in India than the RBI Governor. Mr. Shaktikanta Das has joined us now. Thank you very much for being with us. Sir, 7% is extremely optimistic; it is in line, of course, with what some of the global projections are. What are some of the sectors driving this growth?

Hello and welcome to Business Today Television. I am Siddharth Zarabi and with me here is Mr. Shaktikanta Das, the Governor of the Reserve Bank of India. Thank you very much, Mr. Das, for joining us at the India Today Business Today studio here at Davos at the World Economic Forum. You have been here. I want to begin with the big question. Last year, the mood around the global economy and the pessimism that existed among CEOs was quite a bit. How is the mood as far as the global economy is concerned? What is your reading of the situation, particularly the supply side bottlenecks that caused a huge inflationary spiral all across the world, Sir?

Haslinda Amin:Preoccupation right now in the markets and everywhere else is rate cuts. When can we expect the RBI to cut rates?

Shaktikanta Das:That will depend on the incoming data. That will depend on the outlook. I find that financial markets all over the world have started talking about rate cuts, whereas the central banks are nowhere near it as per the statements which are coming out from various central banks. So far as India is concerned, inflation has moderated steadily from the peak of 7.8% which we saw immediately after the onset of the Ukraine war. It has come within our target range of 2% to 6%, but our target being 4%, we are still moving towards 4%. Till we reach 4% on a durable basis, it will be too premature to talk about rate cuts in the context of India.Haslinda Amin:But expectations are that you will get to 4% before 2025, which means you will get there this year. Could we possibly see rate cuts in the second half?Shaktikanta Das:I have said yesterday in another forum that our expectation of average headline inflation for the next year 2024-25 starting from the first of April, is 4.5% with several ups and downs. Unless we reach 4%, and unless we see clear evidence that it is going to sustain at that level, it will be really premature to talk about rate cuts and at the moment as I speak to you, the topic of rate cuts in that aspect is not on our table, it is not even under discussion. Our focus is now to remain actively disinflationary to bring inflation to 4%.

​

Well, good morning and a warm welcome to this horizon scan session on growth engines for emerging markets. Thank you for joining us here in the Ideas Hub at Davos and thank you to our communities joining us online from around the world. My name is Stephan Mergenthaler from the World Economic Forum and I have the pleasure to facilitate this session.

Moderator: Thank you, Governor. Lots of interesting comments you made in your speech. I would like to start with what you said towards the end, where you said, in your interaction with some bank CEOs, they had some areas of concern and I remember at the time when the RBI had raised the risk weights on unsecured loans, you had called it a pre-emptive measure. So, are there any other areas which make you a little bit worried and where you will now direct your lens with more intensity?

Good afternoon everyone and welcome to the Post-Monetary Policy Press Conference of the Reserve Bank of India. This is the last of this calendar year and I would like to welcome all media friends to this Press Conference. Today, we have with us Honorable Governor Shri Shaktikanta Das, Deputy Governors – Dr. M. D. Patra, Shri M. Rajeshwar Rao, Shri T. Rabi Sankar, and Shri J. Swaminathan. We also have with us today, our Executive Directors Dr. O. P. Mall and Dr. Rajiv Ranjan.

Raghuvir Srinivasan, Editor, Business Line:

Recognition of the Reserve Bank's adroit handling of monetary policy and regulations over the last three years especially since the interest rate cycle turned a year and a half ago. I would like to ask you two or three questions very quickly. The first is you will go down in history as the only Governor of the Reserve Bank of India who had the job to guide the country and the economy during a calamity that the country faced. Now, I would like to understand your thought process when you were so super active during the COVID period. The moment COVID was announced you opened up communication with the markets and with the press very quickly; going in front of the cameras and addressing people. Now what was your thought process when you went through that difficult period helming the RBI?

Moderator:

Thank you so much Sir, for joining us today. Ladies and gentlemen, as you all are aware the Governor Mr. Shaktikanta Das has been rated as the Top Central Banker Globally by Global Finance Magazine. He is also being conferred with the Governor of the Year Award at Central Banking Award 2023. He has cemented his position as someone who is adept at really making critical reforms. He has overseen the world's most innovative leading payments and its innovation and stirred India through difficult times and is playing an instrumental role in catapulting India into global arenas with his crystal clarity, intuitive originality, his analytical mastery, and most importantly, his ability to navigate through the clutter and come up with razor-sharp perspectives. Ladies and gentlemen, a big, big applause for Mr. Shaktikanta Das, Governor, Reserve Bank of India.

Welcome to the 2023 Annual Meetings Governor Series Talk. I am Krishna Srinivasan, Director of the Asia Pacific Department of the International Monetary Fund. Today, I am honored and privileged to welcome Governor, Shaktikanta Das of the RBI. We will be talking about the frontiers of central banking in Asia.

Governor Das requires no introduction, but I will do my obligatory piece here. Governor Das took over the helm of the RBI in 2018 at a critical moment for both India and the world and since then, he has been guiding monetary policy and banking regulation in the world's fifth-largest economy. During the COVID-19 pandemic, he took bold and timely actions to mitigate the impact of the pandemic and to save lives and livelihoods. He is passionate about digital technology and fintech, both geared towards increasing access of the layman or a common person to finance and promote financial literacy.

Participants from the RBI:

Shri Shaktikanta Das – Governor, Reserve Bank of India
Dr. Michael D. Patra – Deputy Governor, Reserve Bank of India
Shri M. Rajeshwar Rao – Deputy Governor, Reserve Bank of India
Shri T. Rabi Sankar – Deputy Governor, Reserve Bank of India
Shri Swaminathan J. – Deputy Governor, Reserve Bank of India
Dr. O. P. Mall – Executive Director, Reserve Bank of India
Dr. Rajiv Ranjan – Executive Director, Reserve Bank of India

Moderator:
Shri Yogesh Dayal – Chief General Manager, Reserve Bank of India

Yogesh Dayal:
Hello everyone and welcome to the Reserve Bank of India for this post- Monetary policy press conference. As always, we have here our respected Governor Shri Shaktikanta Das and along with him, our Deputy Governors; Dr. M. D. Patra, Shri M. Rajeshwar Rao, Shri T. Rabi Sankar, Shri Swaminathan J. and also with us today, our Executive Directors Dr. O. P. Mall and Dr. Rajiv Ranjan. With this, I welcome all of you to the RBI’s press conference and before going ahead with the press conference, I will request the Governor to make a few opening remarks. Over to you Sir.

Shaktikanta Das:
Thank you. As I have done on previous occasions, I would like to summarise whatever I have said in my statement, and I have nine points very quickly.

1. Domestic economic activity continues to be resilient. India is poised to become the new growth engine of the world.

2. Declining core inflation is a silver line. But headline CPI inflation remains vulnerable to recurring and overlapping food price shocks.

3. The MPC remains highly alert and will not hesitate to take timely and appropriate action if the situation warrants.

4. It is emphatically reiterated that the inflation target is 4% and not 2% to 6%. Hence, monetary policy needs to remain actively disinflationary at the current juncture.

5. Liquidity will be actively managed consistent with the monetary policy stance. OMO sales will be undertaken, as necessary.

6. Banks with surplus funds are encouraged to lend in the interbank call market for better returns instead of passively parking them in the SDF.

7. The financial sector balance sheet remains robust, while the Reserve Bank is closely monitoring the emerging trends. Banks and NBFCs are expected to strengthen their internal surveillance mechanisms and institute suitable safeguards wherever necessary.

8. Financial stability is fundamental to price stability and growth. That is the core principle which we follow.

9. The external sector is eminently manageable.

Thank you.

Yogesh Dayal:
Thank you Sir for those opening remarks. I will begin the press conference by inviting Mr. Anup Roy from Bloomberg to ask his question.

Anup Roy, Bloomberg:
Sir, this is regarding the OMO announcement that you did. So, will there be a calendar for OMO and is this in preparation for the JP Morgan bond index inclusion?

Shaktikanta Das:
As I have said in my statement, the first thing I would like to say is that it has nothing to do with the bond index inclusion and let me reiterate that it is a part of our domestic liquidity management. With regard to the calendar, I have said that we will watch the evolving trends. There are several moving parts in the whole liquidity scenario. We will watch the evolving trends and we will notify as and when it becomes necessary. So, we do not, at the moment, propose to give a calendar.

Participants from the RBI: Shri Shaktikanta Das – Governor, Reserve Bank of India Dr. Michael D. Patra – Deputy Governor, Reserve Bank of India Shri M. Rajeshwar Rao – Deputy Governor, Reserve Bank of India Shri T. Rabi Sankar – Deputy Governor, Reserve Bank of India Shri Swaminathan J. – Deputy Governor, Reserve Bank of India Dr. O. P. Mall – Executive Director, Reserve Bank of India Dr. Rajiv Ranjan – Executive Director, Reserve Bank of India Moderator:
Shri Yogesh Dayal – Chief General Manager, Reserve Bank of India

Participants from the RBI: Shri Shaktikanta Das – Governor, Reserve Bank of India Shri M. K. Jain – Deputy Governor, Reserve Bank of India Dr. Michael D. Patra – Deputy

Moderator: Hello, ladies and gentlemen, I don't think I need to introduce the RBI Governor to you. All of you know him, so we can get started straight away. Mr. Das, thank you very much for finding the time today. Has it been the most challenging year of your tenure or would you say the COVID year 2020 was more challenging? Shaktikanta Das: Every challenge in a particular context looks more challenging than the previous one. There were so many situations when I was a

Participants from RBI: Shri Shaktikanta Das – Governor, Reserve Bank of India Shri M. K. Jain – Deputy Governor, Reserve Bank of India Dr. Michael D. Patra – Deputy Governor, Reserve Bank of India Shri T. Rabi Sankar – Deputy Governor, Reserve Bank of India Dr. O. P. Mall – Executive Director, Reserve Bank of India Shri Saurav Sinha – Executive Director, Reserve Bank of India Shri R. Subramanian – Executive Director, Reserve Bank of India Dr. Rajiv Ranjan – Executive Director, Reserve Bank of India Moderator: Shri Yogesh Dayal – Chief General Manager, Reserve Bank of India  ​

Sukumar Ranganathan Good afternoon, everyone. I have with me Mr. Shaktikanta Das, who really needs no introduction, the Governor of the Reserve Bank of India; and I think we can all safely say that his has been one of the reassuring voices, every time when he comes on television to present his policy, especially over the last two years in the course of the pandemic. The Bank has seen us through a really tough phase, and there are challenges ahead, so he and I are goin

ज़ी बिजनेस आरबीआई ने कोविड-19 पेंडेमिक के समय देश के बैंकिंग सिस्टम और अर्थव्यवस्था को बड़े मुश्किल दौर से निकालने का काम किया है। ब्याज दरों में तेज कटौती करके, सिस्टम में लिक्विडिटी डालकर, जरूरत पड़ने पर मोराटोरियम देकर और साथ ही साथ लोंस की रिस्ट्रक्चरिंग को आसान करके, अर्थव्यवस्था को उस वक्त जिस बड़े सहारे की जरूरत थी, बैंकिंग सिस्टम को थी, वह काम किया। लेकिन आरबीआई का काम ऐसा है कि चुनौतियां कभी खत्म नहीं होती। अभी भी कुछ बड़ी और नई चुनौतियां हैं, दुनिया भर से भी, और हमारी अपनी भी। एक ओर महंगाई तेजी से बढ़ती जा रही है, ब्याज दरें बढ़ रही है और दूसरी तरफ मजबूत अर्थव्यवस्था में ग्रोथ बरकरार रखने की चुनौतियाँ है। आइए इसी खास मुद्दे पर आज हमारे साथ एक बेहद खास मेहमान, भारतीय रिज़र्व बैंक के गवर्नर श्री शक्तिकान्त दास साहब कार्यक्रम में शामिल हो रहे हैं।

Participants from RBI: Shri Shaktikanta Das – Governor, Reserve Bank of India Shri M. K. Jain – Deputy Governor, Reserve Bank of India Dr. Michael D. Patra – Deputy Governor, Reserve Bank of India Shri M. Rajeshwar Rao – Deputy Governor, Reserve Bank of India Shri T. Rabi Sankar – Deputy Governor, Reserve Bank of India Dr. O. P. Mall – Executive Director, Reserve Bank of India Dr. Rajiv Ranjan – Executive Director, Reserve Bank of India Moderator: Shri Yogesh Dayal –

Participants from RBI:Shri Shaktikanta Das – Governor, Reserve Bank of India Dr. Michael D. Patra – Deputy Governor, Reserve Bank of India Shri M. Rajeshwar Rao – Deputy Governor, Reserve Bank of India Shri T. Rabi Sankar – Deputy Governor, Reserve Bank of India Shri S. C. Murmu – Executive Director, Reserve Bank of India Shri Yogesh Dayal – Chief General Manager, Reserve Bank of India (moderator) Shaktikanta Das: Yogesh. We can start. I think everybody has joined the

Participants from RBI: Shri Shaktikanta Das – Governor, Reserve Bank of India Shri M. K. Jain – Deputy Governor, Reserve Bank of India Dr. Michael D. Patra – Deputy Governor, Reserve Bank of India Shri M. Rajeshwar Rao – Deputy Governor, Reserve Bank of India Shri T. Rabi Sankar – Deputy Governor, Reserve Bank of India Shri Yogesh Dayal – Chief General Manager, Reserve Bank of India (moderator) Shaktikanta Das:Good morning everyone. Welcome to this press conference. I

Participants from RBI: Shri Shaktikanta Das – Governor, Reserve Bank of India Shri M. K. Jain – Deputy Governor, Reserve Bank of India Dr. Michael D. Patra – Deputy Governor, Reserve Bank of India Shri M. Rajeshwar Rao – Deputy Governor, Reserve Bank of India Shri T. Rabi Sankar – Deputy Governor, Reserve Bank of India Shri Yogesh Dayal – Chief General Manager, Reserve Bank of India Yogesh Dayal (Moderator): Welcome to the post Monetary Policy Press Conference on Octo