MUMBAI: Sanjay Malhotra, the 26th Governor of the Reserve Bank of India, assumed charge on Wednesday, pledging to uphold the institution’s legacy with a focus on deepening public trust, fostering economic growth, and ensuring policy and financial stability.
Malhotra, 56, steps into the role at a pivotal juncture, with inflation surging past comfort levels, economic growth slowing to a seven-quarter low, and the rupee at an all-time low against the US dollar. Speaking at his first press interaction, Malhotra promised to deliver on the public’s expectations with integrity and commitment.
“We will put our best foot forward in public interest to deliver what the nation seeks from us – trust, growth, and stability,” Malhotra said, emphasising the central bank’s critical role in navigating an increasingly complex global economic environment marked by geopolitical tensions, climate risks, and political uncertainties.
The career bureaucrat arrived at the RBI’s iconic Mint Street headquarters at 10 a.m., where he officially took charge in the presence of Deputy Governors M. Rajeshwar Rao, T. Rabi Sankar, and Swaminathan J. However, Michael Patra, the Deputy Governor overseeing monetary policy, was notably absent.
Praise for RBI workforce
Reflecting on the RBI’s storied history, Malhotra credited its stature to the diligence and dedication of its workforce, singling out his predecessor Shaktikanta Das for his commendable tenure. “I will continue to uphold the legacy of this esteemed institution and take it forward,” he pledged.
While Malhotra refrained from directly addressing inflation, he stressed stability as a cornerstone of his vision, pointing to the importance of policy certainty in achieving this goal. Drawing on his experience as Revenue Secretary, he said his focus had always been on fostering a predictable policy environment.
Financial inclusion will remain a priority for the central bank under Malhotra’s leadership. He promised to collaborate with regulators, state governments, and the Centre to broaden access to banking and financial services while leveraging cutting-edge technology to drive innovation.
“While innovation will be encouraged, we will remain vigilant to the risks and put necessary guardrails in place,” he noted.
Media needs to wait…
Addressing the media with a cricket metaphor – a nod to his predecessor’s style – Malhotra remarked, “I cannot start playing my shots on day one.” He expressed a commitment to understanding the issues in depth before taking questions or making decisions.
With the next monetary policy review slated for early February, Malhotra has nearly two months to navigate his maiden decisions on interest rates and other key issues. Until then, he aims to rely on a consultative approach, recognizing that the RBI does not hold a monopoly on knowledge.
As he charts his course, Malhotra’s emphasis on trust, growth, and stability will serve as guiding principles in steering the central bank through India’s evolving economic landscape.
