RBI adopting more accommodative stance under Sanjay Malhotra: Analysts

This is reflected in the measures taken by the central bank in the past few months to spur economic growth and ease liquidity tightness

Since Sanjay Malhotra took office as governor in December, the Reserve Bank of India (RBI) has adopted a more accommodative stance, which bodes well for banking and the economy as they navigate a growth slowdown, according to analysts.

 

This is evident in the measures it has taken, including a cut of 25 basis points in the policy repo rate, the first in nearly five years; frequent liquidity injections to ease tightness in the system; the postponement of proposed regulatory norms; the withdrawal of cease-and-desist orders on several entities; and the relaxation of risk weightings on banks’ exposure to non-banking financial