India’s monetary policy financially inclusive by design: RBI DG Patra


PTI, Dec 24, 2021, 1:02 PM IST

New Delhi: The country’s monetary policy is, by design, financially inclusive and this strategy will result in policy effectiveness and welfare maximization going ahead, Reserve Bank of India’s Deputy Governor Michael D Patra said on Friday.

Financial inclusion appears to have gone up, with the level of the RBI’s financial inclusion index rising from 49.9 in March 2019 to 53.1 in March 2020 and further to 53.9 in March 2021, Patra said at an event organized at the Indian Institute of Management (IIM), Ahmedabad.

“The evidence is still forming and strong conclusions from its analysis may be premature, but India’s monetary policy is, by design, financially inclusive and it will reap the benefits of this strategy in the future…,” he stated.

An economy with all consumers financially included would expect to experience less output volatility due to lower consumption volatility. In an economy with financially excluded consumers, monetary policy has to assign a greater weight to stabilize output, he said.

Patra said going ahead as financial inclusion rises even further in India, consumption volatility as a source of output volatility can be expected to wane.

This will provide headroom for monetary policy to remain focused on minimizing inflation volatility, which brings welfare gains for all, he added.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

LeT member, wanted for terror activities in Bengaluru, extradited from Rwanda

Discussion on ‘Hybrid’ model for hosting Champions Trophy set to dominate ICC meeting

There are talks regarding changing Karnataka Cong president, says Minister Parameshwara

LS, RS got adjourned due to govt’s continuing refusal to allow Oppn to raise Adani ‘scam’: Cong

Donald Trump ‘friend of India’: Minister Goyal

Lokayukta police quiz ex-MUDA Commissioner

HC seeks Delhi govt’s stand on BJP MPs’ PIL to implement AB-PMJAY in city

Related Articles More

Nine Adani Group firms trade higher; Adani Total soars nearly 19 pc

Equity markets rise in early trade amid buying in HDFC Bank, SBI

Sensex rises by 230 points on gains in Adani stocks, select blue-chips

Infosys to dish out average performance bonus of 90% for Q2

Gautam Adani, nephew Sagar not charged with bribery, but with fraud: Adani Green clarifies amid US DoJ indictment

MUST WATCH

Grafting

Coconut Flower

Prakash Belawadi

Naxal Leader Vikram Gowda

Christmas Cake Fruit Mixing


Latest Additions

India should be prepared to tackle challenges like cyber warfare, climate change: President Murmu

LeT member, wanted for terror activities in Bengaluru, extradited from Rwanda

SC raps HP govt over denial of job to 2014 Asian Games gold winner

Discussion on ‘Hybrid’ model for hosting Champions Trophy set to dominate ICC meeting

Kejriwal continues attack on Centre over law and order in Delhi ahead of assembly polls

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.