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Informist, Wednesday, Oct. 1, 2025

 

MUMBAI – Following are the highlights of comments by Reserve Bank of India Governor Sanjay Malhotra and other top central bank officials to the media on Wednesday at the conclusion of the Monetary Policy Committee's fourth bi-monthly meeting for 2025-26 (Apr-Mar):

 

SANJAY MALHOTRA

* Inflation reduced considerably since last meeting
* Monetary Policy transmission been good, still happening
* No rate cut because policy transmission is still ongoing
* Net policy transmission to gilt yields is only about 30 bps
* Inflation has fallen 1 percentage points from earlier forecast
* Changing growth, inflation dynamics led to a tweak in language
* Govt, RBI will make efforts to counter external headwinds
* There was a discussion to change policy stance to accommodative
* Two MPC members wanted to change policy stance to accommodative
* Loan policy of 2016 was to derisk banking system as a whole
* Seeing share of corporates' banking exposure fallen over yrs
* Tariffs were factored in for all econ forecasts
* Inflation forecast cut includes GST changes, tariff impact
* GST changes will not fully offset impact of US tariffs
* Changes to banking norms well thought out, will consult
* Banks were allowed to fund M&As for infra cos
* Decided to review each and every regulation every 5-7 years
* Have to regularly revise, review regulatory ecosystem
* No plan to levy any fee on UPI transactions
* Customer interest has to be protected when they take loans
* Working on software to preempt fraudulent bank transactions
* Financial, price stability is foremost for us
* Even one episode of fincl instability can take us back many yrs
* Govt has put in place several steps for supply chain mgmt
* Will do whatever required to deal with weather-related risks
* Do not target any level for rupee
* Seeing good demand in lot of sectors for capex
* Primary tool for policy transmission is repo rate
* Hopeful policy transmission will take place in other sectors
* Confident policy trasnmission will continue going forward
* Got various suggestions on inflation targetting framework
* Urban co-op bank new licences only after adequate consultation
* Try to remove undue, abnormal volatility in rupee
* Public sentiment gets priced into the rupee

 

M. RAJESHWAR RAO
* On banks funding M&As: Banking system is now stronger, can take risk

T. RABI SANKAR
* Still looking at what will be benchmark for rupee reference rate
* Software will reduce bank frauds significantly
 

POONAM GUPTA
* Inflation numbers have been surprisingly really, really benign
* Fast-evolving, fluid situation, so we have to watch
* There is room for a rate cut, but have to consider other factors
* Number of things have to be considered before deciding next action

 

End

 

Compiled by Vinod Bhovad

Filed by Vandana Hingorani

 

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Story no - 2025-10011312497737840
Transmitted Time- 10/01/2025 01:12:49 PM