Outlook Business Desk
Appointed to lead the Reserve Bank of India (RBI) in December 2018, Das' primary focus was to restore institutional harmony and promote collaborative decision-making within RBI. Significant reforms have been introduced in banking and monetary policy since then
The IL&FS crisis triggered liquidity and governance challenges within the NBFC sector. In response, the RBI introduced special liquidity facilities for solvent NBFCs and tightened regulations to enhance governance and risk management, successfully restoring investor confidence and alleviating liquidity pressures in the sector
During the pandemic, the RBI reduced the repo rate to a historic low of 4%. A moratorium on term loans and working capital was also introduced, along with targeted long-term repo operations (TLTROs) to inject liquidity into the system, to provide relief to borrowers and stabilize the economy
The RBI expanded UPI, making it a global case study by introducing features such as overdraft facilities. It also initiated discussions for cross-border UPI transactions with countries like Singapore and Bhutan. As a result, UPI transactions saw significant growth, reaching over 14 billion monthly by mid-2024
Following high-profile defaults, the RBI introduced stricter regulations for NBFCs, implementing scale-based regulations, classifying NBFCs into categories for more effective supervision, to enhance the stability of the sector and minimize systemic risks
In response to the PMC Bank fraud, the RBI implemented governance reforms to strengthen oversight. Key measures included regular audits, stricter capital requirements, and improved transparency to ensure better compliance with regulatory norms
The RBI initiated pilot projects for both wholesale and retail Central Bank Digital Currencies (CBDC) as part of its efforts to reduce reliance on cash and enhance transaction efficiency. The goals included improving security and supporting financial inclusion. The CBDC has the potential to optimize monetary policy and reduce transaction costs