Sanjay Malhotra, who took over as RBI’s 26th governor on Wednesday, said stability, trust and growth will remain the central bank’s core values. “India’s growth trajectory must continue, and RBI will play a key role in fostering it. Financial inclusion is central to this effort,” he said in Mumbai.
The ex-revenue secretary said while ensuring stability – “a core value in taxation, fiscal and monetary policy as we navigate a dynamic world” – it was necessary to remain agile and responsive to changing circumstances. He added RBI would undertake a consultative approach, “recognising that knowledge and expertise are not monopolised by any single institution”.
Many experts view him as more dovish compared to predecessor Shaktikanta Das, who maintained rates despite growth decelerating to 5.4% in Q2 of FY25.
Continuity, policy stability to remain core values: RBI governor
MUMBAI: Continuity, stability, trust and growth will remain RBI’s core values, its new governor said on Wednesday. Sanjay Malhotra said that the country’s growth trajectory must continue and that RBI will play a key role in fostering it.
Malhotra, a career bureaucrat, assumed office as RBI’s 26th governor on Wednesday. He replaces Shaktikanta Das, whose six-year term ended on Tuesday.
“India’s growth trajectory must continue, and RBI will play a key role in fostering this growth. Financial inclusion is central to this effort. While significant progress has been made in bringing banking services to every corner of the country, more remains to be done,” Malhotra said in his first press conference as governor.
“I will continue to uphold the legacy and take it forward,” he said, adding that RBI had, in its 90th year, given itself the theme of stability, trust, and growth – three apt pillars which are very pertinent as the economy was entering the “Amrit Kaal” and to realise the vision of “Viksit Bharat” by 2047. “It’s a huge responsibility we have, to ensure that the growth the country needs continues and that will continue,” he said.
Malhotra did not share his thoughts on the macroeconomic situation or other major issues, saying he would like to understand and discuss matters before giving his views. Many, however, see him as more dovish compared to predecessor Shaktikanta Das, who maintained rates despite growth decelerating to 5.4% in Q2 FY25.
“Policy stability is crucial. Whether in taxation, fiscal, or monetary policy, continuity and stability give businesses and individuals confidence. This will remain a core value as we navigate a dynamic world characterised by geopolitical tensions, climate change, and political uncertainties,” he said. He also noted that while ensuring stability, it was necessary to remain agile and responsive to changing circumstances.
Malhotra, who was the revenue secretary, said RBI would undertake a consultative approach. “This approach ensures that policies are well-informed and effective. I intend to continue the practice, recognising that knowledge and expertise are not monopolised by any single institution,” he said.