New RBI Governor signs in, says will focus on growth, stability

Sanjay Malhotra took charge as the 26th Governor of Reserve Bank of India (RBI) on Wednesday. He promised to focus on deepening trust, growth and ensuring stability.

Malhotra, 56, takes over as the central bank governor at a critical time where inflation has shot above the comfort level, growth has declined to a seven-quarter low and rupee is at all-time low level against US dollar.

“I can assure that we will put our best foot forward in public interest to deliver what the public of India looks forward to, which is trust, which is growth and which is a stable and certain policy,” he told reporters at his maiden interaction after taking charge.

The career bureaucrat arrived at the RBI headquarters at the Mint Street around 10 am and completed formalities of taking charge in the presence of Deputy Governors M Rajeshwar Rao, T Rabi Sankar and Swaminathan J.

Michael Patra, Deputy Governor in-charge of the critical monetary policy function, was not present.

Malhotra said, “We are in a very dynamic world right now fraught with geopolitical tensions, climate change risks and political uncertainties.” He affirmed the RBI would remain “alert and agile” to meet the challenges.

The RBI was a prestigious institution which had done commendable work over its history courtesy the diligence and hard work of its staff members and senior officials, said Malhotra, specifically mentioning his predecessor Shaktikanta Das’ name.

“I will continue to uphold the legacy (of the RBI) and take it forward,” he affirmed, outlining his thoughts on the key focus areas.

On growth, he said it was a “huge responsibility” to ensure that the expansion in economic activity continues.

Although there was no explicit mention of inflation in his remarks, Malhotra stressed that the focus would be on “stability” and “trust”.

Policy certainty could be among the factors that could ensure stability, Malhotra said, adding that in his earlier assignment as the Revenue Secretary his focus was on stability in policy.

As an institution, he said, the RBI was what it was because of the “trust” it had earned for working with the public’s interest in mind, and added that it would be his endeavour to strengthen it.