Launch of Utkarsh 2.0 – Reserve Bank of India’s Medium-term Strategy Framework

The Reserve Bank of India’s Medium-term Strategy Framework for the period 2023-2025 – ‘Utkarsh 2.0’ – was launched by Shri Shaktikanta Das, Governor, RBI. The first strategy framework (Utkarsh 2022) covering the period 2019-2022 was launched in July 2019. It became a medium-term strategy document guiding the Bank’s progress towards realisation of the identified milestones. Utkarsh 2.0 would allow the central bank to both react and act proactively to confront socio-economic challenges.

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Significance of Utkarsh 2.0:

Utkarsh 2.0 harnesses the strengths of Utkarsh 2022 by retaining the six Vision statements as well as Core Purpose, Values, and Mission statement. Collectively, they create a strategic guiding path. The Vision in Utkarsh 2.0 that will guide the Reserve Bank of India over the period 2023-25 are:

• Excellence in performance of its functions;
• Strengthened trust of citizens and Institutions in the RBI;
• Enhanced relevance and significance in national and global roles;
• Transparent, accountable and ethics-driven internal governance;
• Best-in-class and environment-friendly digital and physical infrastructure; and
• Innovative, dynamic and skilled human resources.

Reserve Bank of India‘s Aim:

• The RBI plans to leverage India’s Group of 20 presidency to showcase the country’s strength in digital payments, and broad-base the acceptance of the rupee in bilateral and multilateral trade as part of its strategy till 2025.
• The central bank would also integrate artificial intelligence and machine learning-driven tools to enhance the reliability of its data analysis and information creation.

Utkarsh 2.0 Expected outcomes:

The desired outputs are proposed to be realised in terms of strategies calibrated through milestones. The Reserve Bank of India attaches high importance to its medium-term strategy and monitors its implementation and progress through a Sub-committee of its Central Board.

The Time-line of This Strategy Framework:

In July 2015, the central bank had launched a formal strategic management programme to provide a framework based on which its policies would be formulated. In 2019, it changed that to a medium-term strategy framework to keep up with emerging challenges in the economy.

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