MUMBAI: RBI Governor Sanjay Malhotra on Monday urged banks and corporates to collaborate and unleash the “animal spirits” to stimulate an investment cycle, amid a turbulent global economic landscape.
Speaking at the inaugural session of the annual banking conference FIBAC 2025, Malhotra said the RBI is exploring measures to expand bank credit, including support for sunrise sectors.
“I want to stress that while regulators focus on stability and regulated entities aim to accelerate growth, our objectives are aligned. We are on the same team, sharing the vision of a Vikshit Bharat,” he said.
He emphasized the importance of working together to enhance the efficiency and effectiveness of India’s financial intermediation so that the benefits reach the public. “With bank and corporate balance sheets at their strongest, now is the time to drive the animal spirits and kickstart an investment cycle, which is crucial at this juncture,” Malhotra added.
The Governor reaffirmed that the RBI will continue conducting monetary policy with price stability as its primary goal, while keeping growth objectives in mind.
Highlighting India’s strong macroeconomic fundamentals, he described the economy as a “symbol of resilience and hope.” “We are at a critical point, navigating a choppy global environment marked by trade tensions, uncertainty, and geopolitical risks. We must push the frontiers of growth,” he said.
Malhotra called for intensified efforts to tackle emerging challenges while seizing opportunities. He also urged all regulated entities to embrace technology, including AI and machine learning, to benefit both themselves and their customers.
