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Informist, Wednesday, Apr. 8, 2026

MUMBAI - Following are the highlights of comments by Reserve Bank of India Governor Sanjay Malhotra and other top central bank officials to the media on Wednesday at the conclusion of the Monetary Policy Committee's first bi-monthly meeting for 2026-27 (Apr-Mar):

SANJAY MALHOTRA

* Headline inflation is the target
* Main goal is headline inflation stays at target, within band

* Will look at components but target is headline inflation

* Gave core inflation projection after request from mkt
* On Iran war ceasefire: Got pleasant news at 0530 IST
* Not in position to say what MPC will do at next meeting
* Noticed heightened volatility in FX mkt in March
* Noticed arbitrage positions being built up in FX mkt in Mar
* Onshore, offshore mkt linkages important in normal times
* FX measures have to be taken in unusual times
* Took FX steps on excessive volatility, positions' built up

* Recent FX steps are not measures that will remain forever
* Real rates as of now are still high
* Real rates are about 2% or so, they are not low
* MPC thought it is time to wait for data, take call ahead
* We are in neutral state
* Quite possible that lower rates continue for a long time
* Long-term macro fundamentals are strong
* Macro fundamentals strong, continue to drive growth
* Even in short-medium term, possible we will have low rates
* Short to medium term we may continue to have low rates
* Will take many months for supply shock to become demand shock
* FX measures not permanent, structural

* Banking system resilient, safe, strong
* Some episodes at pvt banks entity-specific, no system risk
* On HDFC Bank, reiterates no material governance issue
* On HDFC Bk: Don't think there is need to take regulatory steps
* On HDFC Bk: Will not shy away from regulatory steps if needed

* There will be cos, sectors hit by war in West Asia
* Don't see West Asia war impacting banks' profitability
* Coming up with a new framework for NBFC categorisation soon
* Don't think FY27 growth estimate of 6.9% too optimistic
* Have sufficient FX reserves, not a matter of concern
* FTAs should help India capital account, current account
* Capital account seems robust, current account manageable
* Expect repatriation of foreign funds to slow down FY27
* Expect repatriation, overseas direct investment to slow FY27
* Hopeful to get good FPI inflows in debt
* Hopeful FPI outflows from equity are not so high
* We need to continue good work done on current, capital accts

* On FCNR-B deposit scheme: These are temporary things
* Only a matter of time that FPI, FDI will come to India
* India's fundamentals are strong, will attract capital
* India's demographics are strong, will attract capital
* India offers macro economic stability, will attract capital
* Higher valuations led to outflow of foreign capital
* High valuations have corrected so expect lower outflows
* FX measures not a structural change
* FX measures cannot be compared to earlier measures
* OIS very thin mkt, not much should be read into it
* Govt bond mkt very deep, let it determine its price

* Financial stability primary objective, then price stability
* Don't know extent of damage caused by West Asia war
* Can't give timeline to undo damage caused by West Asia war
* We don't have a view on gold prices
* Energy supply normalising will help keep inflation in check
* Intent is to keep weighted avg call rate near repo rate
* Lower money mkt rates not a signal for lower interest rates
* Loan waivers have to be targeted, not general waivers
* Don't see significant risk to bank credit growth due to war
* Our CPI projections take into account supply shock
* Monetary policy theoretically a tool for fincl stability

* Monetary policy not needed for fincl stability as of now
* US-Iran ceasefire taken into account for monetary policy

T. RABI SANKAR
* Took FX mkt curbs on artificial drying up of dlr supply in mkt

* CBDC future of payments; there is a right time to launch it
* Gradually getting tech, use cases right for CBDC
* No hurry to launch CBDC

SWAMINATHAN J.
* Not averse to taking regulatory steps for banking sector
* IFR removal more in nature of simplification

POONAM GUPTA
* Remittances come from diverse regions, share of Gulf nations dn
* Not anticipating dent in overseas remittances
* Attractive valuations will attract foreign capital
* Exchange rate will attract foreign capital
* High nominal GDP growth to attract foreign capital

RBI ED INDRANIL BHATTACHARYYA
* Apr-Sept unclaimed deposit refunds INR 1.8 bln/month
* Sept to now unclaimed deposit refund INR 7.6 bln/mo
 

End

Compiled by Vinod Bhovad

Filed by Vandana Hingorani

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