deepak mohanty : what should be the framework for monetary policy in future? vote of thanks by mr deepak mohanty, executive director of the reserve bank of india, at the 15th c d deshmukh memorial lecture on “ a revolution in monetary policy – lessons in the wake of the global financial crisis ” delivered by prof joseph stiglitz, mumbai, 3 january 2013. * * * honourable professor joseph stiglitz, governor dr. subbarao, distinguished guests and colleagues from the reserve bank. central banks have come under severe intellectual scrutiny ever since the global crisis, even as they have crossed all conventional barriers in responding to the crisis. monetary policy was partly blamed for the genesis of the crisis, and it continues to be blamed for ineffectiveness in giving us a durable recovery. we need nothing short of a revolution to make monetary policy more relevant. two major forces playing out since the crisis could aid this revolution : first, the innovative response of advanced country central banks to ensure that this time it should be different from the great depression. second, the animated academic debate amongst the best minds in economics and finance, led by nobel laureates like prof stiglitz, to recommend what should be the framework for monetary policy in future? in his opening remarks, governor dr. subbarao discussed the first dimension, which included extensive reliance of advanced country central banks on quantitative and credit easing measures, operation twist and forward guidance, to escape the theoretical limits posed to the conventional conduct of monetary policy by the zero lower bound ( zlb ). he noted the far reaching changes emerging in the recent period in monetary policy frameworks of advanced country central banks, with the fed announcing an explicit target for unemployment ; the bank of england examining possible replacement of inflation targeting with nominal income targeting, and the bank of japan being expected to respond to prolonged deflation by accepting a higher explicit inflation target. emerging market central banks, despite the pre - crisis best practices, generally preferred to continue with multiple objectives, which included financial stability, and also tried to manage the impossible trinity, with country specific approach to exchange rate regimes and capital account. after the global crisis, the spillovers form ultra - accommodative monetary policies in advanced economies have amplified the challenge from the impossible trinity, besides increasing commodity price pressures. governor, dr. subbarao, encapsulated in his remarks the complex nature of the issues involved in the recent innovations in the conduct of monetary policy, most of which could be

swaminathan j : governance in small finance banks - driving sustainable growth and stability keynote address by mr swaminathan j, deputy governor of the reserve bank of india, at the conference of directors of small finance banks, bengaluru, 27 september 2024. * * * chairpersons and directors of the boards of small finance banks ; chief executive officers of sfbs ; executive directors, chief general managers and colleagues from the reserve bank of india ; ladies and gentlemen. a very good morning to all of you. it is an honour to address this distinguished gathering in the inaugural conference of board of directors of small finance banks organised by the rbi. as has been mentioned, this conference is in continuation of the reserve bank's efforts to reach out to its supervised entities through a direct dialogue with their boards and top management. our objective is to reaffirm the importance of good governance for maintaining financial stability and fostering sustainable growth. in his address1 to the directors of public and private sector banks last year, the governor outlined a comprehensive 10 - point charter that addressed key aspects such as the role of the board, its independence, the importance of setting the tone from the top, etc. his speech serves as an excellent blueprint for regulatory expectations from the boards of directors, and i encourage you to review it if you haven't already. today, i would like to discuss three key issues with you : ( i ) the vital role of small finance banks in promoting financial inclusion, ( ii ) the necessity of strengthening governance and assurance functions for sustainable growth, and ( iii ) important considerations regarding business models and risks that boards should be mindful of. important financial inclusion objective of sfbs as you are aware, the licensing of small finance banks was introduced a decade ago, in 2014, with the primary objective of advancing financial inclusion. beyond serving as a vehicle to mobilise savings, sfbs were also envisioned to extend affordable credit to underserved and unorganised sectors, such as small and marginal farmers as well as small business units, by leveraging technology to reduce costs and improve accessibility. india, today, stands at a pivotal moment in her development trajectory. in the last 75 years, we have transformed ourselves from an agrarian economy into one driven by industry and services. however, translating our gdp into higher per capita gross national income comparable to developed economies will require a comprehensive approach towards inclusive and sustainable economic growth. this will inter - alia entail education, skill development, employment generation,