The Reserve Bank of India (RBI) Governor, D Subbarao, said the global economic downturn would be deeper and recovery would take longer than thought before.
“The economy is facing an extraordinary challenge. The global recession, a fall-out of the unprecedented financial crisis, is the most serious economic problem that the world has faced in the post-war era,” Subbarao said in his address to employees on the occasion of RBI’s platinum jubilee.
The Reserve Bank would work towards managing the crisis and minimising the pain of adjustment, he said. “It is a challenge since a lot is expected of us. It is also an opportunity as it gives us a chance to demonstrate that we can rise to the occasion, think out of the box, lead from the front and act swiftly and effectively,” Subbarao said.
There is a rise in responsibilities and role in the international arena reflects the emergence of India as a key player in global growth. RBI is an active participant in several important international institutions that seek to promote more effective regulatory structures and financial and systemic stability.
Referring to the platinum jubilee, he said the celebrations would be announced in the next one month. “There will be events of celebration, but I am anxious that this must go beyond mere discrete events of celebration.”
“The platinum jubilee must launch a series of initiatives and activities that make the Reserve Bank a more responsive, relevant, professional and effective public policy institution and remind each of us how we can serve the institution, and thereby the country, better. In short, our goal must be to make a difference,” he added.
“The large and diverse responsibilities of the bank demand vastly different resources in terms of infrastructure and human competencies. In fact, as our mandate has evolved and grown, our resources and the organisation of these resources too have undergone significant changes. Employees are main assets and that the efficacy of an institution is fundamentally dependent on the sum total of its individual human capital as well as how effectively it is able to draw out the best from its talent pool,” he said.