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Informist, Wednesday, Oct. 7, 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 Wednesday at the conclusion of the Monetary Policy Committee's fourth bi-monthly meeting for 2026-27 (Apr-Mar):

SANJAY MALHOTRA

* Discussed all possibilities on rate
* Change in stance suggests no rate cuts in near term
* Quantum of future rate hikes relies on CPI, GDP dynamics
* Will focus on bringing headline inflation to target of 4%
* Headline CPI up on base effect, supply side shocks
* Focussing on headline inflation alone may not be appropriate
* Credit growth to stay strong
* See credit growth strong going forward
* Credit growth to stay strong, aid growth
* Policy decisions are based on domestic growth, inflation
* Policy decision based on domestic econ outlook
* Global econ dynamics have some impact on decisions

* NBFC credit growth is quite robust
* Don't see any issues, concerns on NBFCs' asset quality
* NBFC credit growth is lower than banks' credit growth
* Draft norms on NBFCs revolving credit for clarity
* Have only clarified NBFCs cannot give revolving credit
* Revolving credit norms are not a new rule
* Systemic, liquidity risks of NBFC revolving credit to be seen
* FCNR(B) deposits inflows show strong India econ fundamentals
* Trust banks will use FCNR(B) deposits' liquidity prudently
* Trust banks will prudently utilise FCNR(B) deposits
* Pressure on current account temporary, to ease sooner, later
* Trust current account will turn to surplus from defict soon
* Ongoing reforms will further boost health of Indian economy

* Seeing banks using FCNR(B) deposits to fund credit growth
* Surplus liquidity post FCNR(B) deposits to get drained soon
* Expect large amount of FCNR(B) liquidity to be used by yr-end
* Don't expect liquidity to remain in high surplus for long
* On use of CRR: "I don't want to rule out anything"
* No liquidity draining measures off the table
* Markets can be quite irrational in short-term
* On rupee: "Markets can be quite irrational in the short term"
* Rupee is not overvalued, it is undervalued
* MPC does not vote on stance change
* MPC used stance for policy guidance going forward
* Calibrated tightening means milder form of tightening
* Calibrated tightening is not pre-determined tightening

* Don't see drop in UPI volume due to levy of MDR
* Don't have a number on India's potential growth rate
* No view so far on IRDAI's commission reform norms
* Premature to gauge impact of US' tariffs on trade
* Seeing some slowing in agri output, rural demand
* We have factored in all conditions in our estimates
* Don't see major negative impact of AI valuation correction
* There has been a partial pass-through of cost increase

* We will ensure that rupee stabilises, finds correct value
* Will no excessive rupee volatility
* We will ensure there is no excessive volatility in FX market
* Will ensure no excessive rupee volatility

SWAMINATHAN J.
* Repo rate hike will moderate banks' credit growth

POONAM GUPTA
* Growth rate has been resilient despite multiple global shocks
* Indicators show underlying growth potential of econ up
* Domestic capital makes India more insular to global environment

SHIRISH CHANDRA MURMU
* Banks well prepared for expected credit loss norms
* Expect smooth transition to expected credit loss norms

ROHIT JAIN
* Formed technical committee for fincl mkt amid global volatility

End

Compiled by Vinod Bhovad

Filed by Akul Nishant Akhoury

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