Stories
RBI Governor Malhotra: India Strong, But Cannot Afford Complacency Amid Global Uncertainty
C
CNBC TV18•03-10-2026, 13:58
RBI Governor Malhotra: India Strong, But Cannot Afford Complacency Amid Global Uncertainty
- •RBI Governor Sanjay Malhotra emphasized India's financial stability but urged caution and resilience-building due to global uncertainty and volatility.
- •Speaking at the 5th Kautilya Economic Conclave, Malhotra highlighted that prolonged stability can lead to complacency and increased risk-taking, stressing the need for proactive policymaking.
- •India's financial system shows strong resilience, with comfortable bank credit-deposit ratios and effective absorption of the West Asia supply shock.
- •Malhotra warned that shocks are inevitable, advocating for countercyclical policies and distinguishing between liquidity and solvency problems for appropriate responses.
- •He noted that geopolitics, cyberattacks, and global bond yield hardening are new sources of financial risk, urging vigilance despite India's strong position.
Key Questions Answered
RBI Governor Sanjay Malhotra stated that India's financial system has enjoyed a long period of calm and is in a strong position, but he cautioned that the country cannot afford to become complacent amid ongoing global uncertainty and volatility.
Governor Malhotra flagged cyber risk as a critical concern because cyber threats know no national borders, prompting the need for enhanced scenario analysis and better risk monitoring as financial systems grow increasingly complex.
India has maintained a very cautious approach toward crypto due to concerns regarding the singleness of money, the implications of its fragmentation for monetary policy, and challenges associated with cross-border payments.
