RBI Governor Calls for India Inc to Come Together to Create Investment Cycle

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday asked banks and corporate to join hands and drive the ‘animal spirits’ in order to create an investment cycle, amidst a situation of economic turmoil in the country.

Addressing the annual banking conference ‘FIBAC 2025’, the Governor said that the central bank is examining measures to expand bank credit, which includes the sunrise sectors.

He said, "I would like to emphasise that we might seem to be on opposite sides, with the regulated entities trying to accelerate growth and the regulators focussing on stability, but we actually have the same objectives. We are in the same team, we have the same shared vision of a Vikshit Bharat.”

The RBI governor also noted that the bank is looking forward to working together with the regulated entities to improve the efficiency and effectiveness of India's financial intermediation and to ensure that the due benefits reach the people.

"At the time when the balance sheets of the banks and the corporates are at their best, they should come together and drive the animal spirits to create an investment cycle, which is so important at this juncture," he added.

Malhotra also stated that the Reserve Bank will continue to conduct monetary policy with the primary objective of price stability, keeping in view the objective of growth. Talking about the Indian economy, he said that it is currently characterised by robust macroeconomic fundamentals and continues to be a symbol of resilience and hope.

"We are now at a critical juncture as we navigate the choppy global economic environment, characterised by heightened trade, uncertainty and persisting geopolitical tensions, we need to push the frontiers of growth," he noted.

The Governor further stressed on stepping up efforts to address emerging challenges, and at the same time seize the opportunities.

He further said the central banks will continue to embrace technology, including AI and ML, and expected all regulated entities to invest in these technologies for their own benefit and for the benefit of their customers.