Stability, trust, and growth key: RBI Guv Sanjay Malhotra in first address

'We cannot be stuck. We have to be agile while maintaining policy continuity,' Sanjay Malhotra said in his first address as RBI governor

Sanjay Malhotra, the newly appointed governor of the Reserve Bank of India (RBI), held his first press conference on Wednesday after officially assuming office. In his address, Malhotra highlighted the RBI’s core themes of stability, trust, and growth as pillars that will continue to guide the central bank. Malhotra succeeds Shaktikanta Das as the 26th governor of the RBI.

 

Reflecting on his new role, Malhotra described it as both an honour and a significant responsibility. He stated that he would uphold the Reserve Bank’s legacy and take it forward.

 

“The RBI, in its mandate, has given itself the theme of stability, trust, and growth. All these three are very apt pillars which we need to continue building on,” Malhotra added.

 

He assured that decisions under his tenure would prioritise public welfare. “Stability in policy and continuity is very important. Decisions will be taken with public interest to preserve trust in this institution,” he said.

 

While stressing the importance of stability, Malhotra acknowledged the need for adaptability in a rapidly changing global environment. “We cannot be stuck. We have to be agile while maintaining policy continuity,” he emphasised.

 

The governor also reiterated the central bank’s role in promoting financial inclusion through the banking sector and ensuring broader access to financial services.

 

Sanjay Malhotra takes charge as RBI governor

Sanjay Malhotra officially assumed the role of RBI governor earlier today, following the end of Shaktikanta Das’ second term on December 10. Malhotra had previously served as revenue secretary and as chairman and managing director of the state-run Rural Electrification Corporation Ltd (REC).

 

Malhotra’s appointment comes at a time of slowed economic growth and inflation concerns. Although the RBI expects inflation to drop by the January-March quarter, consumer concerns remain.

 

Last week, the RBI chose to maintain the repo rate at 6.5 per cent but lowered the gross domestic product (GDP) growth forecast to 6.6 per cent from 7.2 per cent for financial year 2024-25 (FY25). The central bank also expects food prices to keep inflation elevated in the third quarter of FY25.

 

The next RBI Monetary Policy Committee meeting is scheduled for February 5-7, 2025.