Skip to main content

RBI governor urges staff to sharpen supervision, regulatory focus

By

 Governor Sanjay Malhotra on Wednesday asked the Reserve Bank staff to persist with regulatory calibrations and sharpen supervision in the new year.In his annual message to staffers, Malhotra said customer centricity and financial inclusion "must remain at the heart” of the central bank's work. “We must persist with strengthening the monetary policy framework, sharpening supervision, calibrating regulation, deepening financial markets, and improving payments and currency management,” Malhotra said in the message.The RBI staff must sharpen their knowledge, enhance their analytical capabilities, embrace technology, and continuously make improvements in processes, he added.Malhotra, a career bureaucrat who recently completed a year at the helm of the RBI, told the staff that their responsibilities will continue to expand in the new year, which will be marked by a rapidly evolving economic and financial landscape shaped by technological change, geoeconomic shifts, and rising public expectations.“The Reserve Bank's strength has always flowed from its people and from a shared belief that our work, though often unseen, makes a meaningful difference to the nation,” he added.The times call for technical excellence, but also a commitment to the central bank's "core institutional values" of integrity, independence, efficiency, humility and a deep sense of public service, Malhotra said.

Reflecting on 2025, Malhotra said a complex global backdrop marked by geopolitical uncertainties, uneven growth and volatile financial markets marked the year. “In this challenging environment, our policy interventions were calibrated to balance stability with growth while ensuring that the banking and the financial sectors continue to support our nation’s development aspirations,” he said.Listing out some successes, Malhotra pointed to putting in place a structured framework for the formulation of regulations, progress in simplification of the regulatory architecture by consolidating a large number of regulatory instructions and also improvements in internal governance at the RBI."A vital dimension of our work this year was the emphasis on customer service and grassroots engagement," he said.

 

-Business Standard 02nd Janauary,2026

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more