Maintaining financial stability remains one of the uppermost objectives of the Reserve Bank of India (RBI), drawing from its wide mandate as the regulator of the banks, NBFCs and payment systems; regulator of the money, forex, government securities and credit markets; and also as the lender-of-the-last resort, according to Shaktikanta Das, RBI Governor. He noted in a latest speech that since the global financial crisis (GFC) of 2008, financial stability has featured even more prominently in the discourse of central banks. It has been well documented that central banks in many countries were narrowly focused on price stability and perhaps overlooked the build-up of financial instability during the great moderation period.
