The Reserve Bank of India (RBI) stands as the Central Bank and regulatory body of our country. It is tasked with the issuance of the Indian rupee, regulation of the banking system, and promoting economic development. It also manages the country's primary payment systems.
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With its primary functions in mind, the RBI rolled out Utkarsh 2022 in July 2019. This three-year-medium term strategy aims to enhance the excellence of RBI's mandates and bolster its trust among Indian citizens and other institutions.
This article delves into the key aspects of Utkarsh 2022, its objectives, and significance, especially from the UPSC exam viewpoint.
Deciphering Utkarsh 2022
Like global central banks that devise long-term or medium-term plans to foster regulatory and supervisory mechanisms, the RBI came up with Utkarsh 2022. This plan identifies and outlines the issues to be addressed in the next three years.
Utkarsh 2022 was launched with the goal to enhance the economic and financial stability and well-being of Indian citizens. Its mission is to provide universal access to financial services and to create a robust financial intermediation infrastructure.
Objectives of Utkarsh 2022
Support India’s macro-economic stability and strengthen the internal and external value of the Indian Rupee.
Advocate consumer protection and ensure the stability of the financial system.
Support markets and institutions within its scope.
Enhance the efficiency and competence of financial and payment systems.
Manage currency and offer banking services to the Government and its banks.
Ensure balanced and sustainable economic development of the country.
Main Functions of the RBI
Monetary Policies Supervisor: The RBI has the monetary authority to formulate, implement, and monitor monetary policies, primarily aiming to maintain price stability.
Financial System Regulator: As the regulatory body, the RBI also supervises India’s financial system. It is responsible for the country’s banking operations and maintaining public confidence in the financial system while introducing cost-effective banking services to the public.
Foreign Exchange Manager: As per the Foreign Exchange Management Act, 1999, the RBI needs to promote external trade and payment while also maintaining India’s foreign exchange market.
Currency Issuer: One of the main functions of the RBI is to issue and exchange or destroy currency and coins not fit for circulation. It also has to maintain an adequate supply of currency in circulation.
Payment Systems Developer: The RBI is responsible for introducing, regulating, supervising, and upgrading new payment and settlement systems in India.
Shri Shaktikanta Das, Governor of RBI launched Utkarsh 2022 in July 2019.
Which agency is associated with Utkarsh 2022?
The board of the Reserve Bank of India (RBI).
Who is the Governor of the Reserve Bank of India?
The Governor of RBI is Shaktikanta Das, IAS Retd., former Secretary, Department of Revenue and Department of Economic Affairs, Ministry of Finance, Government of India.
When was the RBI established?
The Reserve Bank of India was established on April 1, 1935.
Where are the headquarters of RBI?
The Central Office of RBI was initially established in Kolkata but was permanently moved to Mumbai in 1937.