Reserve Bank of India (RBI) Governor Shaktikanta Das at the RBI's fourth bi-monthly monetary policy review meeting of 2019-20, in Mumbai, Friday, Oct. 4, 2019./ File
Reserve Bank of India (RBI) Governor Shaktikanta Das at the RBI's fourth bi-monthly monetary policy review meeting of 2019-20, in Mumbai, Friday, Oct. 4, 2019./ File

Reserve Bank of India (RBI) Governor Shaktikanta Das said that the centre and RBI are engaging with each other on privatisation of public sector banks (PSBs). During an interview, he further said that maintaining banking sector health with strong capital base and ethics-driven governance remains a policy priority.

Das said, "We are under discussion with government on privatisation of PSBs, process will go forward."

The former economic secretary said an effective regulation is a priority for the Reserve Bank, and regulation should not constrain innovation in the fintech space.

Underlining the huge role that technology and innovation played in serving the consumers better and faster, Das said, the RBI processed 274 crore digital transactions to provide direct benefit transfer to people, most of which happened during the pandemic.

"Since RTGS, which along with NEFT has been made round the clock now, has multi-currency capabilities, there is scope taking it beyond our shores," the governor said.

Despite its official opposition to the private crypto currencies, Das said the central bank is assessing financial stability concerns as it works on way ahead for central bank digital currency.

The central bank chief also said that the RBI is committed to using all policy tools to support the economic recovery while preserving price stability and financial stability.

Admitting that the spike in new pandemic infections is a matter of concern, Das, however, said the nation is equipped with additional insurances this time to tackle the afflictions.

(With input from agencies)

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