Need to ensure re gains currency globally: PM
Reserve Bank of India (RBI) to seek a bigger global role for the rupee through the next decade to match New Delhi’s world-beating rates of economic expansion, fixing a significant milestone target in what would be the local currency’s long journey toward capital account convertibility.
“Today, India is becoming an engine of global growth with a 15% share of the total,” Modi said at the 90 th Foundation Day of the RBI. “Efforts should be made to make the rupee more accessible and acceptable all over the world.”
The RBI has lately pioneered the digitisation of payments through the Unified Payments Interface (UPI), a platform many developing and developed nations are keen to use. It has also helped improve the asset quality of Indian lenders through a determined clean-up drive, aided by a revamped bankruptcy law.
Mint Road has also begun the Central Bank Digital Currency (CBDC) pilot for retail users, being among the first few in the world to do so. But, by contrast, it has been conservative with the rupee’s role beyond India’s water margin. Although the Indian rupee’s exchange rate with other currencies is determined by market forces, barring the periods of major volatility, there is no free movement of the currency as capital beyond the Indian frontier. “The RBI can take India’s growth to the global stage,” Modi said.
“The entire Global South can be helped.” PM Modi highlighted many of the above achievements in his speech. India has reached several milestones in the past decade on exploiting digital technologies
