Archive · 3 Sep 2025
RBI Governor Malhotra Adopts Consultative Approach
The new boss of India's central bank, Sanjay Malhotra, is listening more to people.
He's making rules with input from banks and businesses.
One big change was making it easier for banks to lend money to certain companies.
He also adjusted rules on gold loans and investments.
These moves aim to help the economy grow while still keeping things safe.
It's like the bank is working with everyone to make sure money flows smoothly and things stay stable.
RBI Governor Sanjay Malhotra has adopted a consultative approach to policy making.
Malhotra rolled back higher risk weights on bank loans to NBFCs.
The RBI cut the run-off rates for retail deposits for liquidity coverage ratio (LCR).
The RBI eased norms on gold loan businesses.
The regulator relaxed norms on lenders’ investments in alternative investment fund (AIF) schemes.
- Who
- Sanjay Malhotra, RBI Governor
- What
- Adopting a consultative approach to policy-making, rolling back risk weights on NBFC loans, and easing various regulations
- When
- Since taking office, and highlighted in a September 2025 publication
- Where
- Reserve Bank of India (RBI)
- Why
- To ensure stable inflation, promote GDP growth, and address industry feedback
- RBI Governor
- Sanjay Malhotra
- Consultation Theme
- Vigorously adopted in new regulations
- Key Decision
- Rolling back higher risk weight on bank loans to NBFCs
- Retail Deposit LCR
- Additional 2.5% run-off factor from April 1, 2026
- Gold Loan LTV
- 85% for consumption loans under ₹2.5 lakh
- Project Finance Provision
- 1% for standard under-construction loans
- AIF Investment
- Individual lender up to 10% of AIF corpus