Reserve Bank of India (RBI) Governor Sanjay Malhotra | Photocredit: Shasank Parade
RBI Governor Sanjay Malhotra asked banks and companies on Monday to come together and to control the “animal spirits” to create an investment cycle, while the country navigates a turbulent global economic environment.
In his inaugural speech at the annual Banking Conference ‘Fibac 2025’, the Governor said that RBI is investigating measures to expand bank credit, including the Sunrise sectors.
“I would like to emphasize that we may seem to be on either side, where the regulated entities try to speed up growth and the regulators that concentrate on stability, but we actually have the same objectives. We are in the same team, we have the same shared vision of a vikshit Bharat,” he said.
Malhotra said he is looking forward to working with the regulated entities to improve the efficiency and effectiveness of India’s financial mediation to ensure that the Due benefits reach people.
“The moment the balance sheets of the banks and the corporates are at their best, they have to come together and manage the animal spirits to create an investment cycle, which is so important at the moment,” he said.
The Governor also said that the reserve bank will continue to implement monetary policy with the primary objective of price stability, so that the objective of growth is kept.
He further said that the Indian economy is characterized today by robust macro -economic Fundamentals and remains a symbol of resilience and hope.
“We are now at a critical moment … while we navigate through the turbulent global economic environment, characterized by increased trade, uncertainty and persistent geopolitical tensions, we must push the boundaries of growth,” he added.
Malhotra emphasized the efforts to take on emerging challenges and at the same time to seize the opportunities.
He further said that the central banks will continue to embrace technology, including AI and ML, and expected all regulated entities in these technologies to invest for their own benefit and for their customers.
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Published on August 25, 2025
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