Overview

• Governor Sanjay Malhotra said the central bank will deploy targeted support and liquidity if the new US levies begin to weigh on growth as the 50% tariff rate on some Indian exports takes effect on August 27.
• The RBI left the repo rate unchanged at 5.5% in August after cutting 100 basis points earlier this year, reiterating a data‑driven, meeting‑by‑meeting approach under its price‑stability mandate.
• Malhotra urged banks and corporates to revive investment and said the RBI is examining measures to expand bank credit, including to sunrise sectors, with close oversight of banks and NBFCs.
• A Regulatory Review Cell is being proposed to periodically reassess rules, with parallel work under way on governance, credit‑risk and ombudsman frameworks, and encouragement for AI/ML adoption by regulated entities.
• Policy buffers include foreign‑exchange reserves of about $695 billion covering roughly 11 months of imports and a recent slide in inflation, though an MPC member noted tax and GST changes may lift consumption even as tariff uncertainty could deter near‑term capex.