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Informist, Wednesday, Apr. 8, 2026

 

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--RBI Malhotra: System liquidity avg daily surplus INR 2.3 tln since last MPC
--RBI Malhotra: To be proactive, pre-emptive in liquidity mgmt
--RBI Malhotra:Will ensure sufficient liquidity to meet product needs of econ
--RBI Malhotra: System level parameters of banks, NBFCs sound
--RBI Malhotra: Banks credit growth maintained upward trajectory
--RBI Malhotra: Credit from all sources grew 14.3% YoY
--RBI Malhotra: Bank credit growth remained broad-based
--RBI Malhotra: Comprehensively reviewed extant norms on banks
--RBI Malhotra: To revise, rationalise matters related to banks' boards
--RBI Malhotra: To consolidate supervisory instructions into smaller list
--RBI Malhotra: Propose to ease some onboarding norms for MSMEs
--RBI Malhotra: To dispense of investment fluctuation reserve
 

 

MUMBAI - The Reserve Bank of India will remain proactive and pre-emptive in managing liquidity conditions to ensure the financial system has adequate funds to support the needs of the economy, Governor Sanjay Malhotra said after the Monetary Policy Committee's meeting on Mon-Wed.

 

Liquidity in the banking system has remained comfortable, with an average daily surplus of about INR 2.3 trillion since the last monetary policy meeting on Feb. 6, Malhotra said. The RBI, he said, would ensure sufficient liquidity is available to meet the productive requirements of the economy, indicating continued support for credit flow and financial stability.

 

The governor said that system-level parameters of banks and non-banking financial companies remain sound, while credit growth continues to show an upward and broad-based trend, supported by adequate liquidity conditions. 

 

Overall credit from all sources has risen 14.3% year-on-year, Malhotra said. The central bank proposed to ease certain on-boarding norms for micro, small, and medium enterprises to improve access to credit. Malhotra also said the central bank would dispense with the investment fluctuation reserve requirement for banks.  

 

On Wednesday, the Monetary Policy Committee decided to keep the repo rate unchanged at 5.25%. Accordingly, the standing deposit facility rate remains 5.00%, while the marginal standing facility rate and bank rate remain 5.50%. The MPC also retained its neutral stance, allowing flexibility to respond to evolving conditions. 

 

To manage short-term liquidity needs, the central bank conducted seven short-term variable rate repo auctions, infusing INR 3.6 trillion into the banking system between February and the end of the financial year 2025-26. It also injected INR 1.37 trillion through two 90-day VRR auctions on Jan. 30, providing durable liquidity support.

 

Alongside liquidity measures, the RBI said it has comprehensively reviewed existing banking regulations and will simplify and rationalise norms, including those related to banks' boards. It also plans to consolidate supervisory instructions into a smaller set to improve clarity.  End 

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Shumaila Firoz 

Edited by Avishek Dutta

 

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