Reserve Bank of India Governor Sanjay Malhotra said on Monday that the Reserve Bank of India has not removed its eyes from its growth target. Also, he will continue to determine the monetary policy keeping in mind his primary target of price stability. Speaking at an annual banking conference, he said that financial and price stability does not disrupt growth, but promotes it. Malhotra also said that 50 per cent of tariff rates on Indian goods exported to the United States have not been effective yet and still expect the conversation and the economy will not have the effect at all.
In the current year, RBI has kept its monetary stance quite stable. The special thing is that they have reduced interest rates by one per cent so far in the current year. Interest rates have been held in the last monetary policy meeting. This means that RBI is focusing on both growth and price stability. Let us also tell you what kind of things they have about growth.
Focus on growth
In its inaugural speech at the annual banking conference FIBAC 2025, the Governor said that the RBI is considering measures to expand bank loans including emerging areas. He said that I would like to emphasize that even though we are seen standing in the opposite direction from each other, where regulated institutions are trying to speed up growth and focus on regulator stability. However, our objectives are really the same. We are in the same party and we have only one shared approach for developed India. Malhotra said that he is eager to work closely with regulated institutions to improve the efficiency and effectiveness of India’s financial mediation, so that it can be ensured that the people get proper benefits.
Emphasis on price stability
He said that at a time when the books of banks and corporates are at their best level, they should come together and increase the enthusiasm to make investment bicycles, which is very important at this time. The governor said that the central bank will continue to operate the monetary policy with the primary objective of price stability, keeping in mind the purpose of growth. He said that today the specialty of the Indian economy is strong large economic infrastructure and it remains a symbol of flexibility and hope. Malhotra said that we are now at a critical turn… as we are dealing with the unstable global economic environment arising out of growing trade, uncertainty and constant geopolitical stresses, we have to set new boundaries of growth.
Emphasis on AI and machine learning
The governor insisted on intensifying efforts to deal with emerging challenges and also to take advantage of opportunities. He said that the central bank will continue to adopt technology including AI and machine learning. Also, all regulated institutions are expected to invest in these technologies for the benefit of themselves and their customers. Investment cycle refers to a continuous process of investment and growth in the economy in which companies and banks together work with each other to pursue the economy.