This apart, Reserve Bank acts as a banking regulator, debt manager, government debt market regulator and currency issuer. Faced with such multiple tasks and complex mandate, there is an utmost necessity of clearer communication on the part of the Reserve Bank of India. What do we need to communicate?
In a central bank, there is necessity of three kinds of communication, viz., (a) policy measures, (b) reasons behind such policy measures and (c) analysis of the economy. RBI is engaged with all these three kinds of communication. In fact, by international standards the Reserve Bank of India (RBI) has a fairly extensive and transparent communication system.