Mumbai: On Monday, Reserve Bank of India (RBI) Governor Sanjay Malhotra emphasized the importance of financial stability and price stability for fostering economic growth. He called on banks and corporations to collaborate in promoting new investments and revitalizing the entrepreneurial spirit of the nation.
"I am eager to partner with regulated entities to enhance the efficiency and effectiveness of our financial sector, ensuring that the benefits reach our citizens. On the demand side, I encourage the industry to invest courageously and support the entrepreneurial spirit that characterizes our nation. It is essential for banks and corporations to unite and stimulate the investment cycle, which is crucial at this time," he stated during a banking-focused event.
While addressing 'FIBAC 2025', a joint initiative by FICCI and IBA, the Governor discussed India's macroeconomic landscape, noting that the country is at a pivotal moment as it navigates the turbulent global economic climate.
"We must push the boundaries of growth and capitalize on the opportunities that arise. The Indian economy has grown significantly and remains a beacon of resilience and optimism," he asserted, according to a FICCI press release.
The RBI Governor further remarked that the main goal of monetary policy regarding price stability has played a crucial role in strengthening India's macroeconomic fundamentals.
"Simultaneously, the Reserve Bank has not overlooked the growth objective. We will persist in implementing monetary policy with a primary focus on price stability while considering the growth objective," he noted.
He also pointed out that the RBI will strive to improve the ease of doing business.
"We are currently consolidating all regulations for different categories of regulated entities. In our effort to establish a principle-based framework, we have granted autonomy to the boards of the respective entities to develop their policies," Governor Malhotra stated.
The Governor mentioned that the RBI intends to establish a Regulatory Review Cell tasked with the responsibility of thoroughly, objectively, systematically, and structurally reviewing each regulation.
"The aim of this review will be to evaluate each regulation with an emphasis on efficiency; its cost-benefit impact; its necessity in the current context and market conditions; consistency and clarity, particularly across various regulations; and the potential for unaddressed or emerging risks, among other factors. The Cell will structure its operations so that every regulation is reviewed at least once every 5-7 years. The Cell will engage with key financial sector industry bodies," he stressed.
CS Setty, Chairman of the IBA and Chairman of the State Bank of India, remarked that India is at a critical juncture and it is essential to promote inclusive growth alongside a sustainable future by exploring new opportunities.
He added that the financial services sector must serve as a crucial catalyst for growth.
Setty further noted that banks need to play a vital role in India's growth narrative by fostering innovation, providing loans to emerging sectors, and spearheading the next wave of long-term capital expenditure.
"With a favorable demographic advantage, strong digital infrastructure, significant growth potential, and a clearly defined national vision under Viksit Bharat, India is at a pivotal moment. This is the time to boost inclusive growth, improve global competitiveness, and create a prosperous and sustainable future," he stated.
Harsha Vardhan Agarwal, President of FICCI and Vice Chairman and MD of Emami Limited, expressed that India is at a crucial turning point.
The world may be unpredictable, yet India remains steadfast and is ready to ascend even higher among the global community of nations.
Referring to the results of a recent survey conducted by FICCI on Global Risks and Opportunities, he stated that the findings indicate that in spite of external challenges, the industry maintains a positive outlook.
"Indian enterprises view India as a prospective global leader -- in renewable energy, defense and aerospace, artificial intelligence, and digital technology," he remarked. "Caution should always be the cornerstone of Indian banking, but ambition must drive us forward. Our banks should not merely finance growth; they must actively create it. The future of finance is not about following the economy; it is about leading it. The Indian banking sector will continue to bolster the growth of our industries and support businesses as we navigate through the current challenges.
