RBI Chief Malhotra Urges Collaborative Investment Amid Tariff Turmoil

Reserve Bank Governor Sanjay Malhotra emphasized the need for banks and corporates to collaborate to boost investments, even as tariff and geopolitical challenges loom. He recognized the need for sector-specific support due to possible tariff impacts and affirmed RBI's commitment to balancing financial stability with growth.

Reserve Bank Governor Sanjay Malhotra on Monday highlighted the crucial role of collaboration between banks and corporates to drive investments in the current challenging economic environment. Speaking at the annual Fibac event, Malhotra expressed optimism about ongoing US-India trade negotiations that aim to mitigate tariff impacts on the domestic economy.

Malhotra addressed concerns over new US tariff threats affecting Indian goods like textiles and shrimps, assuring sector-specific assistance where needed. He emphasized the importance of maintaining monetary policies that consider both inflation and growth dynamics while navigating geopolitical and tariff challenges.

In light of waning corporate credit demand, RBI is actively exploring measures to expand bank credit, particularly for long-term capital expenditures essential for India's economic ambitions, according to industry leaders. Additionally, RBI plans to soon implement Basel-III norms and enhance regulations through richer stakeholder data.

(With inputs from agencies.)