Finance Minister Sitharaman addresses central board of RBI, reviews economic situation

Digital Desk: Finance Minister Nirmala Sitharaman highlighted the expectations for the financial industry as well as the major emphasis areas indicated in the union budget on Saturday.

In her address to the Reserve Bank of India's central board of directors, she provided these instructions (RBI).

According to official sources, the board also discussed the current state of the local and international economies and the related problems.

Following the introduction of the Union Budget, the Finance Minister is accustomed to addressing the board of the RBI.

The RBI board members offered a few recommendations for the government to take into account while praising the Finance Minister for the Budget.

Interest rates have recently entered positive territory, according to RBI Governor Shaktikanta Das, who spoke after the meeting.

"Instability might result from persistently negative interest rates. A component of price stability is the increase in our interest rate "Das remarked while speaking to the media.

He was alluding to the most recent 25 basis point increase in the repo rate, which brought it to 6.50 percent.

Das continued by saying that while service exports are performing incredibly well, the balance of payments position is eminently manageable.

"Remittances have increased by 27%, but exports of goods are declining. It has been accomplished to reach the $400 billion annual aim, "added said.

"If oil prices go down significantly and if there is an advantage of other commodity prices, it will work to our favour in terms of contributing to reduced inflation," the RBI Governor remarked in response to price hikes.

Junior Finance Ministers Bhagwat Karad and Pankaj Choudhary attended the meeting with Sitharaman. Along with Chief Economic Advisor V. Anantha Nageswaran, other participants in the meeting included Finance Secretary T.V. Somanathan, Revenue Secretary Sanjay Malhotra, Secretary in the Department of Investment and Public Asset Management (DIPAM) Tuhin Kanta Pandey, and T.V. Somanathan.

Additionally present were the secretaries of banking and economic affairs, Ajay Seth and Vivek Joshi.