Reserve Bank of India finalized Utkarsh 2022

The Reserve Bank of India (RBI) board finalised a three- year roadmap to improve regulation and supervision, among other functions of the central bank.

This medium term strategy name is Utkarsh 2022 which is in line with the global central banks’ plan to strengthen the regulatory and supervisory mechanism, sources aware of the board meeting.

“It is a three-year road map for medium term objective to be achieved for improving regulation, supervision of the central bank,” said a source.

“Worldwide, all central banks strengthen the regulatory and supervisory mechanism, everybody is formulating a long-term plan and a medium-term plan. So, the RBI has also decided it will formulate a pragramme to outline what is to be achieved in the next three years,” the source added.

An internal committee was formed, which was anchored by outgoing Deputy Governor Viral Acharya, to identify issues that needed to be addressed over the next three years. While around a dozen areas were identified by the committee, some board members felt that areas could be filtered and lesser number of areas can be identified for implementation in the next three years.

“The idea is that the central bank plays a proactive role and takes preemptive action to avoid any crisis,” said another source, highlighting the IL&FS debt default issue and the crisis of confidence the non-banking financial sector faced in the aftermath.

In a statement after the board meeting, the RBI said the board finalised the three -year medium-term strategy document of the Reserve Bank, ‘which covered, inter-alia, its mission and vision statement.’

The board also approved the RBI’s budget for the July 2019—June 2020 period. Other matters discussed by the board included issues relating to currency management and payment systems, the statement added.

RBI’s board:
The decision was made by RBI’s board that met in New Delhi. It finalized the 3-year medium-term strategy document which covered inter-alia, its mission and vision statement. The board approved the RBI’s budget for the July 2019-June 2020 period. The board also discussed issues relating to currency management and payment systems.

Utkarsh 2022: Why ?
To accomplish the global central banks’ plan, every country is formulating a long-term plan and a medium-term plan. RBI’s Utkarsh 2022 will be in line with the global central banks’ plan to strengthen the regulatory and supervisory mechanism. 
New internal committee:
To implement Utkarsh 2022, RBI has formed an internal committee. It is to be headed by the outgoing Deputy Governor Viral Acharya. The committee will identify issues that needed to be addressed over the next three years. Among the identified areas of issues, the committee will select and address the vital areas for the implementation in the next three years.

Objective:
RBI plans to play a proactive role and take preemptive action to avoid any crisis like the IL&FS debt default issue and the crisis of confidence the non-banking financial sector faced in the aftermath.