Overview

• Malhotra said the central bank will deploy additional policy measures and targeted support for industries most exposed if the new US tariffs weigh on growth, with the levies due to start on Aug. 27.
• The RBI is examining ways to expand bank credit, including to sunrise sectors, as the governor urged banks and corporates to use strong balance sheets to restart a private investment cycle.
• Policy remains anchored on price stability with support for growth, following 100 basis points of repo cuts earlier this year, a pause in August, and continued ample liquidity to the banking system.
• The governor flagged concentrated risks for gems and jewellery, textiles, apparel, shrimps and MSMEs, noting that 45% of export items fall outside the tariff net and expressing hope negotiations limit the overall impact.
• The central bank plans closer oversight of banks and NBFCs and is pursuing regulatory streamlining, including a proposed Regulatory Review Cell and ombudsman framework reviews, to safeguard stability and lower intermediation costs.