RBI Governor Urges Banks and Corporates to Join Hands in Reviving Investment Cycle
Mumbai – Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday underlined the need for banks and corporates to work together in building a robust investment cycle at a time when the global economic environment remains unstable. Speaking at the annual banking conference FIBAC 2025, he said the RBI is examining measures to expand bank credit, including to emerging sectors, to sustain growth.
Malhotra stressed that while regulated entities may appear focused on growth and the regulator on stability, both share the same vision of a developed India. He said the RBI looks forward to working closely with regulated institutions to improve efficiency in financial intermediation and ensure that the benefits reach people effectively.
As per agency report, he noted that with bank and corporate balance sheets at their strongest levels, it is crucial for them to come together to reignite the investment cycle, which will play a central role in boosting economic momentum. He assured that the RBI would continue to steer monetary policy with price stability as its primary goal, while keeping growth objectives in focus.
The Governor highlighted the resilience of India’s economy, describing it as a symbol of strength and optimism backed by solid macroeconomic fundamentals. He cautioned, however, that the nation is at a critical juncture, facing challenges from rising trade uncertainties and ongoing geopolitical tensions, which require setting new growth benchmarks.
Malhotra also emphasized the importance of embracing technology, stating that the central bank would continue to adopt innovations such as artificial intelligence and machine learning. He urged all regulated entities to invest in such technologies for the benefit of both institutions and their customers.
He concluded by calling for accelerated efforts to address emerging challenges while also seizing new opportunities, reiterating that the collaboration between banks and corporates is essential to drive long-term investment and economic growth.
