Reserve Bank of India (RBI) Governor Sanjay Malhotra has reaffirmed the central bank’s commitment to staying agile and proactive in its policy actions amid evolving global economic uncertainties. Speaking at the 24th FIMMDA-PDAI Annual Conference in Bali, Malhotra emphasized that while India’s economy and financial markets have shown resilience, they remain vulnerable to global tariff wars, inflationary pressures, and financial volatility.
Malhotra projected India’s real GDP growth to be at 6.5% for FY26, slightly lower than previous years, but still positioning India as the fastest-growing major economy. While headline inflation is expected to align with the 4% target, risks remain due to weather-related disturbances and global volatility.
The rupee, which faced pressure earlier, has recovered, and the government securities market has remained strong despite corrections in equity markets due to capital outflows. The RBI has reduced repo rates twice and ensured ample liquidity to support economic growth.
Malhotra highlighted increased liquidity and transparency in India’s forex markets and announced a pilot initiative allowing individuals to buy US dollars via the Bharat Connect platform. The Governor urged banks to remain vigilant and boost public awareness regarding the misuse of banking channels for illegal forex trading. Malhotra concluded by stating that the RBI will continue to monitor global developments closely and adjust policies accordingly to safeguard India’s economic stability.
