The Indian economy is “relatively better positioned amid a gloomy global scenario,” RBI Governor Shakkanta Das said on Friday, adding that the “Indian rupee is holding up well compared to industrial and emerging market peers.”
“We have zero tolerance for volatile and bumpy movements in the rupee,” Das said, adding, “RBI actions have helped the rupee move smoothly.”
The rupee fell seven paise to 79.92 against the US dollar at the open on Friday.
“RBI has provided US dollars to the market to ensure adequate liquidity,” the governor said.
Opening the Bank of Baroda Annual Banking Conclave 2022, he said: “The future of banking will see a major shift in customer choices and preferences with heightened expectations of the banking industry.”
Das said: “The banking sector is undergoing a transformation, the future of banking would see a major shift in customer choices and preferences with increased expectations of the banking industry.”
“Each of the developments would present unique opportunities and challenges for existing and newer players.”
The RBI governor added, “You have to keep in mind that the disruptions can sometimes come on suddenly, making it impossible to predict.”
Discussing the future of the banking industry, Das said: “The banking of tomorrow would revolve around a) the introduction of new technologies, the customization of products and services, improved business and process automation, b) the development of suitable business models with strong governance frameworks, better Information management, changes in working methods, building improved resilience capabilities and a more responsible social and environmental role for banks.”
The RBI Governor said: “The current inflation targeting framework has worked very well since it was introduced in 2016.”
RBI’s decision on rate hike and liquidity always takes growth target into account, Das said.
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