RBI Grade BNABARD ESISEBI
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Context:
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
The Central Board of Directors of the Reserve Bank of India (RBI) approved the Bank’s budget for FY 2026–27 and its Medium-Term Strategy Framework – Utkarsh 3.0 (2026–29) during its 622nd meeting held in Patna under the chairmanship of Sanjay Malhotra.
What is Utkarsh 3.0?
Utkarsh 3.0 is the Medium-Term Strategy Framework (MTSF) of the Reserve Bank of India for the period 2026–2029. It outlines the RBI’s strategic priorities, reform agenda, and institutional goals to strengthen India’s financial system over the next three years.
It is the third phase of RBI’s “Utkarsh” strategy series, following earlier versions (Utkarsh 1.0 and 2.0).
Key Objectives of Utkarsh 3.0
1. Strengthening Financial Stability
- Enhancing monitoring of systemic risks
- Improving crisis preparedness and resilience of banks and NBFCs
2. Improving Regulatory and Supervisory Framework
- Adoption of risk-based and data-driven supervision
- Strengthening compliance and governance standards
3. Promoting Digital Transformation
- Expanding use of AI, data analytics, and fintech innovations
- Improving digital payment ecosystems and cybersecurity
4. Enhancing Monetary Policy Effectiveness
- Better transmission of policy rates
- Strengthening inflation targeting framework
5. Financial Inclusion and Consumer Protection
- Expanding access to banking and digital finance
- Strengthening grievance redressal mechanisms
6. Internal Capacity Building
- Upskilling RBI workforce
- Modernising internal systems and processes
Key Highlights:
1. Approval of Budget and Strategy
- RBI approved:
- Annual Budget for 2026–27
- Utkarsh 3.0 (2026–29) – the next phase of RBI’s strategic roadmap
- Utkarsh framework focuses on:
- Strengthening financial stability
- Enhancing regulatory efficiency
- Promoting innovation in financial systems
- Improving internal governance and digital capabilities
2. Economic Assessment by the Board
- The Board reviewed:
- Global economic trends and uncertainties
- Geopolitical developments affecting markets
- Impact on financial stability and capital flows
- Emphasis on managing emerging risks in a volatile global environment
