And the contours of that mandate were not set by the central bank itself, but by legislators, who themselves were democratically elected. This model has worked because, by sticking closely to its mandate, the Bundesbank has gained the trust of the people. It has cultivated this trust by actively communicating the rationale for its mandate and its plans to achieve it.
Being a regulator and supervisor of banks, the Reserve Bank stands committed to ensuring a sound and robust banking system in the country. Emergence of new business models and new technology and its application in banking and finance have thrown up new opportunities.