‘Utkarsh 2.0’. Medium-term Strategy Framework for 2023-2025 by RBI

‘Utkarsh 2.0’. Medium-term Strategy Framework for 2023-2025 by RBI

Subject :  History

Section: Monetary Policy

Background:

• RBI in 2015 launched a strategic management program to provide a framework for all its future policies and frameworks. Under this framework, the first strategy framework titled Utkarsh 2022 was launched, covering the period from 2019-2022.
• It was a 3-year medium-term roadmap to improve regulation and supervision by the central bank. It was built in line with the central banks globally to strengthen the supervisory and regulatory mechanism.
• Under it an internal committee was formed, under the aegis of the then deputy governor Viral Acharya.
• Their task was to identify issues that can be addressed in the next three years until 2022. The agenda was to prevent a crisis to the likes of IL&FS and the issues that follow, especially regarding investor confidence.

Utkarsh 2.0

• RBI will put in a resilient framework for oversight of Centralised Payment Systems-NEFT and RTGS.
• Upgradation of RTGS, to bring in new functionalities
• Six vision statements (from Utkarsh 1.0 are continued) that are designed to improve the performance of the RBI’s statutory and other functions
• core purpose in Utkarsh is to foster monetary and financial stability keeping in mind the objective of growth and to ensure the development of an efficient and inclusive financial system