From the country’s perspective, the need of the hour from the new governor is the delineation of an agile credit delivery structure that meets the demands of all sectors of the economy. The exigencies of a fast-growing nation keep changing and hence the goal posts are constantly redefined. There have been demands for augumenting greater credit flow towards the small and medium enterprises since they have been underserved by the extant credit delivery system. The demands are justified and the new governor has to address this swiftly.
Also, there is an urgent need to step up the digital banking capabilities and platforms of the overall banking ecosystem in India.This includes understanding and catalyzing a technology driven banking environment that will enhance the fraud-free banking experience of the common banking customer. It is true that India has made significant progress in this area, but a lot more needs to be done.
The challenges of a huge bad loan baggage among banks is something that cannot be brushed under the carpet. The new incumbent must resist efforts by vested interests to ignore RBI guidelines and blatantly divert credit to undeserving borrowers.
It can be expected, at a minimum, that the new stewardship at the RBI will stay away from open confrontation of the government.