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Updated January 25th, 2020 at 02:32 IST

Ahead of Budget 2020, RBI emphasizes the need for structural reforms, fiscal measures

In a bid to provide durable push to demand and boost growth Shaktikanta Das on Friday said that structural reforms and fiscal measures may have to be continued

Reported by: Prachi Mankani
RBI
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In a bid to provide a durable push to demand and boost growth RBI Governor Shaktikanta Das on Friday said that structural reforms and fiscal measures may have to be continued. Addressing the 'Seven Ages of India's Monetary Policy' at St Stephen's College in New Delhi, Das said the RBI constantly updates its assessment of the economy based on incoming data and survey-based information juxtaposed with model-based estimates for policy formulation.

"This approach helped the Reserve Bank to use the policy space opened up by the expected moderation in inflation and act early, recognizing the imminent slow down before it was confirmed by data subsequently," he said.

"Monetary policy, however, has its own limits. Structural reforms and fiscal measures may have to be continued and further activated to provide a durable push to demand and boost growth," he added.

READ: RBI blasts CRAs for allowing 'rating shopping' to large borrowers

Potential Growth Drivers

Das said monetary policy frameworks in India has evolved in line with the developments in theory and country practices, the changing nature of the economy and developments in financial markets.

"Some of these areas include prioritising food processing industries, tourism, e-commerce, start-ups, and efforts to become a part of the global value chain. The Government is also focusing on infrastructure spending which will augment the growth potential of the economy. States should also play an important role by enhancing capital expenditure which has a high multiplier effect," he said.

"Within the broad objectives, however, the relative emphasis on inflation, growth and financial stability has varied across monetary policy regimes," he said.

READ: RBI governor Shaktikanta Das launches Mobile Application MANI to aid visually challenged

RBI Governor Shaktikanta Das Launches Mobile Application MANI To Aid Visually Challenged

Reserve Bank of India Governor Shaktikanta Das has launched a mobile application to aid the visually challenged persons. The application MANI (Mobile Aided Note Identifier) can identify the Indian currency notes and gives details of the denominations to the visually challenged people. The note is required to be placed in front of the mobile camera, the app identifies the denomination based on the captured image and gives audio and non-sonic notification intimating the currency note denomination to the user. The app is available free on the Android platform Play store as well as the IOS platform App store.

READ: History behind, Das-led RBI charts new trails sans acrimony

READ: RBI reassures on stability of India's financial system in annual FSR, concedes headwinds

(With Inputs from ANI)

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Published January 25th, 2020 at 02:32 IST

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