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Informist, Friday, Feb. 6, 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 Friday at the conclusion of the Monetary Policy Committee's sixth bi-monthly meeting for 2025-26 (Apr-Mar):

 

SANJAY MALHOTRA

* It is our duty to provide ample liquidity
* Our duty to provide liquidity to meet econ's productive needs
* Will ensure monetary polciy transmission happens across markets
* We have tools to ensure liquidity is at policy repo rate
* Aim to keep overnight rates at repo
* We have OMO, VRR, VRRR to help manage liquidity
* Transmission has been excellent
* Transmission excellent, to provide liquidity pre-emptively
* Liquidity a continuous process, have provided it outside policy

* We cannot mention exact details on liquidity in policy statement
* Not right way to look at gross govt borrowing
* More govt bond redemptions this year than last year
* FY27 net borrowing increase is only INR 200 bln over FY26
* Growth in net mkt borrow much less than one would expect
* T-bill borrowing to help manage yield curve better
* Budget numbers for small savings quite conservative
* Govt should be able to raise resources at reasonable prices
* Govt borrowing programme is on the lower side
* Budget number has gone up quite a bit, but not net borrowing
* Call money mkt, TREPS, repo mkt have high linkage
* We are not looking at changing liquidity mgmt framework
* Not looking at making changes to liquidity mgmt immediately

* Liquidity mgmt framework is complex due to market linkages
* CD ratio not important for us, liquidity is
* Macroecon fundamentals, including external sector, very strong
* Near-term, medium-term outlook on growth is very healthy
* Trade deals are on top of very, very comfortable current account
* Trade pacts to further help already comfortable current acct
* Lot of trade deals have investment commitments
* Trade deals are in domain of govt, regulators will facilitate
* Opening up of insurance sector will help capital account

* IT safe harbour rules have not got attention they deserve
* Safe harbour rules for IT very big move for tax simplicity
* We are in the same sweet spot on inflation, maybe even better
* Headline inflation is high due to base effect, food prices
* Inflation seen up on base effects, food price volatility
* We are in a better position on growth than when we met last
* US bond holdings down due to fall in FX reserves
* No reduction in holding of US treasuries
* We are very comfortable on gold loans
* Reviewing gold loans across all portfolios
* Lower deposit rate policy transmission expected
* Hopeful policy transmission will continue to improve further

* Mis-selling has been a concern
* Has been conscious effort to up lenders' customer sensitivity
* MSME loan cap not changed since 2010
* Sure will find a way of sustaining, improving payment infra
* Will continue to be data dependent
* Five of six MPC members at a neutral phase
* Econ in good spot, underlying inflation low
* Underlying inflation is much lower than forecast, target
* Expect policy rates to be low for a long time
* Headline inflation can go up, down; underlying inflation low
* Real interest rate still high
* Policy rates neutral, below neutral
* Will take decisions policy to policy

* Supervisory effort is more on being pro-active, pre-emptive
* Will compensate each customer for small frauds only once
* INR 25,000 compensation to customers for frauds one-time only
* On small frauds, customers should learn from their mistakes
* Have not calculated how much trade deals will add to GDP growth
* Haven't assessed US trade deal impact on growth
* Mis-selling is not that high across the system
* US trade pact impact on rupee to depend on deal's details
* Will be our effort that call rate remains at policy rate
* Don't expect call rate to be lower than SDF rate
* Average call rate has been at repo rate
* Over the long term, expect corp bond market to grow
* Don't target any level for rupee

* Concerned with any excessive, undue volatility in rupee
* Mis-classification of farm loans not a system-wide issue
* Bank lending to REITs a positive for bks, real estate sector
* Don't intervene on normal rupee movement, stay away
 

T. RABI SANKAR
* Bond buybacks get factored in during the course of year
* Rise in govt borrow not significant
* Certain that RBI will manage govt borrowing efficiently

 

SHIRISH CHANDRA MURMU
* Will compensate people for frauds for small amounts

SWAMINATHAN J.
* Gold loan rise not unexpected, aided by gold price spurt

* KCC revision not due to farm loans mis-classification
 

End

 

Compiled by Vinod Bhovad

Edited by Vandana Hingorani

 

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