Mumbai (Maharashtra) [India], July 25 : RBI Governor Sanjay Malhotra on Friday highlighted that the Reserve Bank of India's monetary policies are forward-looking and the Monetary Policy Committee of India (MPC) will focus more on outlook than current data.
MPC is set to hold a meeting on August 4-6, and monetary policy will be announced on August 6, 2025.
Addressing the Financial Express BFSI Summit in Mumbai, Governor Sanjay Malhotra said, "Monetary policy being data-driven, more on the outlook will be guided by the revised numbers if any call is taken."
He further added that, "I may mention over here that the stance of neutral allows them to give them the flexibility to move in either direction or even to have a pause, and the MPC will be looking at the data that comes in."
During the event, the governor also commented on the RBI's effort to maintain price stability.
Malhotra said, "Price stability continues to be a challenge number one, and I would say banking regulation, because that's our other area we're a full-service central bank, as they say, so apart from monetary policy, we do so many other things, including banking regulation."
The RBI Governor also highlighted concerns about conflicts of interest and issues with corporate ownership, particularly when a single group owns businesses in both the financial sector (like banks) and the real economy (like manufacturing or retail).
"While some NBFCs have deep pockets but, if the same group is doing both financial and real-economy activities, there will be an inherent conflict of interestthese concerns remain," he said.
Furthermore, the RBI Governor stressed on the critical importance of payment systems being both efficient and secure for any economy. He emphasised on the long-term viability of India's UPI system, which currently has no transaction fees.
"See, UPI payment systems are very important. I think that's the lifeline; payment money is a lifeline for any economy. So we need to have an efficient and universally accessible system. It's a public infrastructure which needs to be provided," Malhotra said.
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