Rate cut, regulatory move to be in focus under Guv Malhotra-led RBI

There are at least four important regulations awaiting the commercial banks that could impact their growth and profitability

The new leadership at the Reserve Bank of India (RBI) under Governor Sanjay Malhotra, along with an almost revamped Monetary Policy Committee (MPC), has set the stage for critical decisions in 2025 regarding policy and regulatory changes amid weak gross domestic product (GDP) growth and a depreciating rupee.

 

Three new external members of the MPC were inducted in October, with two of them already voting for a rate cut in the December policy. There would be more changes in the rate-setting panel, as Deputy Governor Michael Patra, who is in charge of monetary policy, is set to complete his term