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RBI officers seek Governor’s intervention to correct promotion policy

admin — Sat, 09 May 2026 08:11:00 +0000

A Reserve Bank of India (RBI) logo is seen inside its headquarters in Mumbai, India.
| Photo Credit: Reuters

The Reserve Bank of India (RBI) officers’ union has written a letter to RBI Governor Sanjay Malhotra, seeking his intervention to correct the promotion policy and restore a time-bound system.

RBI officers across various regional offices and the central bank’s headquarters in Mumbai staged protests on Friday (May 8, 2026) against recent policy changes that link promotions to vacancy availability, replacing the earlier time-bound promotion system.

Reserve Bank of India Officers’ Association (RBIOA), in a letter dated May 8, expressed disappointment and anguish over the decision of the central bank to proceed with the revised promotion policy without adequately considering the serious concerns, objections, and constructive suggestions repeatedly placed by the association on behalf of the officer community.

The revised policy, in its present form, has caused widespread dissatisfaction, frustration and demoralisation among officers across cadres and grades, it added.

Citing past interactions with officers at various regional offices, it said that you [Governor] had indicated the possibility of a few time-bound promotions.

However, the final policy has not only failed to address the structural stagnation prevailing across grades but has also disregarded the core concerns repeatedly highlighted by the association, it pointed out.

According to an estimate, about 8,000 officers working at the RBI are going to be impacted by the change in the promotion policy.

Officers frustrated

Stagnation is rising across the various levels, leading to frustration, particularly among younger officers, who are now confronted with the prospect of remaining in the same grade for prolonged periods without meaningful progression, it said.

“We earnestly request the top management to reconsider the matter urgently and initiate a comprehensive review of the revised promotion policy in consultation with RBIOA so as to arrive at a fair, balanced and sustainable framework for career progression of officers,” it noted.

The association demanded that the newly issued promotion policy be immediately kept in abeyance and reviewed comprehensively in consultation with RBIOA through a structured and meaningful consultation mechanism.

It also demanded that the assured, time-bound promotions may be introduced across all cadres from Grade A to Grade E, ensuring fair and predictable career progression for officers.

The principle of ‘One Grade, One Allowance’ may be introduced across grades by removing the existing condition of a minimum of five years’ service in a grade for eligibility to facilities, allowances and entitlements attached to that grade, it said.

The letter further said that the association submits that the above measures are not merely matters of financial benefit but are essential for restoring morale, institutional trust and long-term organisational commitment among officers.

A motivated and professionally secure officer community remains indispensable to preserving the excellence, independence and effectiveness of the Reserve Bank of India, it added.

It is to be noted that the officers of another financial sector regulator, the Securities and Exchange Board of India (Sebi), had also staged a protest in 2024 to press for wage-related issues.

Published – May 09, 2026 01:41 pm IST

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Indian economy to record high growth despite volatile external environment: RBI Governor

admin — Wed, 31 Dec 2025 10:48:00 +0000

Reserve Bank of India (RBI) Governor Sanjay Malhotra. File
| Photo Credit: PTI

The Indian economy is projected to register high growth, driven by strong domestic consumption and investment despite a volatile and unfavourable external environment, RBI Governor Sanjay Malhotra said on Wednesday (December 31, 2025).

“Maintaining financial stability and strengthening the financial system remains our north star,” Mr. Malhotra said in his foreword in the latest edition of the RBI Financial Stability Report.

According to him, financial sector regulators recognise that financial stability is not an end in itself and promoting innovation and growth, protecting consumers, a pragmatic approach to regulation and supervision that improves financial system efficiency are equally important.

“The most important contribution the policymakers can make is to foster a financial system that is robust and resilient to shocks, efficient in providing financial services and promotes responsible innovation,” he said.

Mr. Malhotra noted that the Indian economy and the financial system remain robust and resilient, supported by strong growth, benign inflation, healthy balance sheets of financial and non-financial firms, sizeable buffers and prudent policy reforms.

“Despite a volatile and unfavourable external environment, the Indian economy is projected to register high growth, driven by strong domestic consumption and investment. Nonetheless, we recognise the near-term challenges from external spillovers and continue to build strong guardrails to safeguard the economy and the financial system from potential shocks,” he said.

Published – December 31, 2025 04:18 pm IST

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“Uncertainty in external demand remains major drag on growth”: Malhotra

admin — Wed, 20 Aug 2025 16:54:00 +0000

Reserve Bank of India (RBI) Governor Sanjay Malhotra. File.
| Photo Credit: ANI

The adverse impact of the tariff and geopolitical uncertainty on demand remained a major concern at the last the Monetary Policy Commitee (MPC) meeting, the minutes of which was released on Wednesday (August 20, 2025) indicate.

“Uncertainty in external demand, driven by tariff and geopolitical uncertainty remains the major drag on growth as it also hinders private investment intentions, which is yet to show visible signs of improvement” stated Sanjay Malhotra Reserve Bank of India (RBI) Governor and chairman of the MPC in the minutes.

Stating that high-frequency indicators project buoyant rural economic activity as well as consumption and sluggishness in urban spending, he observed that during the remaining part of the financial year, growth would likely to receive support from both favourable supply-side factors as well as a supportive policy environment.

“Monsoon has progressed well, sowing has been satisfactory, and reservoir levels are comfortable, all of which augur well for farm output and rural demand,” he emphasised.

“Urban demand is likely to pick up during the festive season, especially in a period of benign inflation. Services sector activity is also likely to remain strong, as evident from forward-looking assessments from surveys, he added.

MPC external member Nagesh Kumar in his statement stated, “The economic growth outlook remains challenging.”

“The private investment sentiment is adversely affected by the trade policy uncertainties. While the signing of the U.K.-India FTA is an important positive development, the U.S. announcement of 25% tariffs on India is causing a lot of anxiety about the economic outlook,” he observed.

“The preliminary calculations suggest that these tariffs may hurt the growth rate in the current year by 20 to 30 basis points but given the fact that the U.S. is a major market for India’s exports of labour-intensive goods such as textiles and garments, leather goods, gems and jewellery, shrimp among other food products, the threat of job losses is more serious,” he said in his statement.

Stating that the uncertainty was affecting the investment climate, he said that going forward, diversification of markets for goods would be important.

“In that context, the negotiations of the India-EU FTA need to be expedited and the FTAs or the comprehensive economic partnership agreements with Japan and the Republic of Korea need to be reviewed to make them more effective, especially for the export of labour-intensive goods,” he mentioned.

“Tapping the domestic market fully for the finished consumer goods by reducing the dependence on imports would also be helpful. Enhancing the domestic value addition in consumer goods exports through building the globally known Indian brands and supply chains, including through overseas direct investments (ODI) and acquisitions of foreign retail chains, would also be important,” Dr Kumar pointed out.

External MPC member Prof. Ram Singh also voices similar concerns in his statement.

”Prospects on the exports front are highly uncertain amidst ever-changing tariff announcements and protracted trade negotiations. The headwinds emanating from a fluid geopolitical scenario, heightened global uncertainties, and volatility in international financial markets pose serious risks to the domestic growth outlook.”

“U.S. tariffs have already put Indian exporters at a disadvantage. Signs of distress in growth and employment for MSMEs are visible in sectors reliant upon the US market, such as diamond and jewellery, textile and apparel, and fisheries,” he highlighted.

Published – August 20, 2025 10:24 pm IST

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RBI Governor asks banks to have robust systems to curb digital frauds

admin — Mon, 27 Jan 2025 20:40:12 +0000

Reserve Bank of India (RBI) Governor Sanjay Malhotra.
| Photo Credit: Reuters

Flagging the rising digital frauds, RBI Governor Sanjay Malhotra on Monday urged banks to put in place robust and proactive systems to curb such misdoings as well as enhance their oversight of third-party service providers to mitigate the risks.

Mr. Malhotra along with his deputies — M Rajeshwar Rao, T Rabi Sankar and Swaminathan J — met MDs and CEOs of public and private sector banks here on Monday.

The meeting was also attended by Reserve Bank of India’s Executive Directors-in-Charge of Regulation and Supervision.

In his remarks, the RBI chief expressed concern over rise in digital frauds and advised banks to establish robust and proactive systems to thwart such attempts.

While dwelling upon IT risk management and cyber security, the governor urged banks to have enhanced oversight over third-party service providers for mitigation of the risks emanating from them, RBI said in a release.

“The need for RBI and banks to work together closely was emphasised and suggestions were sought from the banks on enhancing the ease of doing business,” it added.

Also, Mr. Malhotra asked the banks to ensure continued financial stability, deepen financial inclusion, improve digital literacy, enhance availability and affordability of credit, strengthen customer service and grievance redress mechanism, and continue to invest in technology.

Further, the RBI chief acknowledged the important role played by the banks in building resilience of the domestic financial system while highlighting some of the main vulnerabilities present globally that can pose downside risks.

The meeting on Monday was part of the central bank’s continuous engagement with the senior management of its supervised entities. The previous such meeting was held on July 3, 2024.

Published – January 28, 2025 02:10 am IST

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Prospects of economy expected to improve in 2025: RBI Governor

admin — Mon, 30 Dec 2024 13:04:23 +0000

Reserve Bank of India’s (RBI) new Governor Sanjay Malhotra.
| Photo Credit: PTI

Facing criticism from the government over the central bank prioritising inflation over growth, the new RBI Governor Sanjay Malhotra on Monday (December 30, 2024) said that prospects of the Indian economy are expected to improve on the back of high consumer and business confidence in 2025.

“As we strive to preserve financial stability to support a higher growth path for the Indian economy, our focus remains steadfast on maintaining stability of financial institutions and, more broadly, systemic stability,” Mr. Malhotra said in foreword to the Financial Stability Report.

He further said that despite the global uncertainties Indian economy is expected to pick up pace in the second half of the current financial year.

“Notwithstanding the uncertainties shrouding the global macro-financial ethos as it unfolds, prospects for the Indian economy are expected to improve after the slowdown in the pace of economic activity in the first half of 2024-25.

“Consumer and business confidence for the year ahead remain high and the investment scenario is brighter as corporations step into 2025 with robust balance sheets and high profitability,” said Mr. Malhotra who took over as 26th Governor earlier this month.

Flagging the issue of growth moderation in the first half, the Finance Ministry in its November Monthly Economic Review had raised concerns that the possibility that structural factors may also have contributed to the slowdown in H1 should not be ruled out.

India recorded a slowdown in GDP growth to a seven-quarter low of 5.4% for the second quarter ended September 2024. For the first half, the GDP growth stood at 6%.

Slowdown in growth and moderation in inflation are building case for RBI to slash policy rate in its upcoming Monetary Policy Committee meeting.

Mr. Malhotra further said that financial sector regulators in India too are intensifying reforms and sharpening their surveillance against the backdrop of the soundness of the financial system bolstered by robust earnings, low levels of impaired assets and strong capital buffers, as this report highlights.

Stress test results reveal that capital levels of the banking system as well as of the Non-banking Financial Companies (NBFCs) sector will remain well above the regulatory minimum even under adverse stress scenarios, he said.

“We continue to secure and anchor public trust and confidence to support India’s aspirational goals. We remain committed to developing a modern financial system that is customer-centric, technologically leveraged and financially inclusive,” he said.

Referring to the global economy, he said, it exhibits resilience in the face of formidable headwinds from political and economic policy uncertainty, persisting conflicts and an environment of fragmenting international trade and tariffs.

Brightening the global prospects is the likelihood that the decline in inflation will continue and align with targets during the year ahead, allowing purchasing power to recover, he said.

As monetary policy gains headroom to further support economic activity, financial conditions can be expected to remain easy and contribute to an improvement in the trajectory of global GDP from a prolonged phase of low growth, he said, adding, robust labour market and sound financial system too provide congenial conditions for this turnaround.

However, he said, the medium-term outlook remains challenging, with downside risks from possible intensification of geopolitical conflicts, sporadic financial market turmoil, extreme climate events and rising indebtedness.

Stretched asset valuations, fragilities in the less regulated non-bank financial intermediaries, and threats from new and emerging technologies also add to the evolving uncertain outlook, he added.

Published – December 30, 2024 06:34 pm IST

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Prospects Of Economy Expected To Improve In 2025: RBI Governor

admin — Mon, 30 Dec 2024 12:20:06 +0000

Mumbai:

Facing criticism from the government over the central bank prioritising inflation over growth, the new RBI Governor Sanjay Malhotra on Monday said that prospects of the Indian economy are expected to improve on the back of high consumer and business confidence in 2025.

“As we strive to preserve financial stability to support a higher growth path for the Indian economy, our focus remains steadfast on maintaining stability of financial institutions and, more broadly, systemic stability,” Sanjay Malhotra said in foreword to the Financial Stability Report.

He further said that despite the global uncertainties Indian economy is expected to pick up pace in the second half of the current financial year.

“Consumer and business confidence for the year ahead remain high and the investment scenario is brighter as corporations step into 2025 with robust balance sheets and high profitability,” said Mr Malhotra who took over as 26th Governor earlier this month.

India recorded a slowdown in GDP growth to a seven-quarter low of 5.4 per cent for the second quarter ended September 2024. For the first half, the GDP growth stood at 6 per cent.

Slowdown in growth and moderation in inflation are building case for RBI to slash policy rate in its upcoming Monetary Policy Committee meeting.

Mr Malhotra further said that financial sector regulators in India too are intensifying reforms and sharpening their surveillance against the backdrop of the soundness of the financial system bolstered by robust earnings, low levels of impaired assets and strong capital buffers, as this report highlights.

Brightening the global prospects is the likelihood that the decline in inflation will continue and align with targets during the year ahead, allowing purchasing power to recover, he said.

Stretched asset valuations, fragilities in the less regulated non-bank financial intermediaries, and threats from new and emerging technologies also add to the evolving uncertain outlook, he added.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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Sanjay Malhotra Takes Charge As RBI’s 26th Governor

admin — Wed, 11 Dec 2024 07:20:09 +0000

Sanjay Malhotra took charge as the 26th Governor of the Reserve Bank of India (RBI).

Mumbai:

Sanjay Malhotra on Wednesday took charge as the 26th Governor of the Reserve Bank of India (RBI).

He took charge as Governor for the next three years with effect from December 11, 2024, the Reserve Bank said in a statement.

Former revenue secretary mR Malhotra replaces Shaktikanta Das, who demitted office on Tuesday after a six years stint.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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Who Is Sanjay Malhotra, IAS Officer Appointed As RBI Governor

admin — Mon, 09 Dec 2024 12:22:30 +0000

Sanjay Malhotra’s tenure will last for three years.

New Delhi:
Sanjay Malhotra, a 1990-batch IAS of Rajasthan cadre, has been appointed as the Governor of the Reserve Bank of India (RBI). He will succeed Shaktikanta Das as the RBI chief.

Here are 5 facts on Sanjay Malhotra:

Prior to his appointment, Sanjay Malhotra served as revenue secretary at the Ministry of Finance.
Before his tenure as Revenue Secretary, Mr Malhotra held the position of Chairman and Managing Director of REC Limited, a state-owned enterprise specialising in financing power projects.
As Revenue Secretary, Mr Malhotra has experience handling Goods and Services Tax (GST) reforms. He also served as an ex-officio Secretary to the GST Council.
Mr Malhotra is an alumnus of the Indian Institute of Technology (IIT) Kanpur. He also has a Master’s degree in public policy from Princeton University, USA.
Mr Malhotra will be the 26th RBI Governor and his tenure will last for three years.

Sanjay Malhotra is the new RBI Governor for a three-year term

admin — Mon, 09 Dec 2024 12:08:25 +0000

Revenue Secretary Sanjay Malhotra has been appointed as the new RBI Governor replacing Shaktikanta Das whose tenure ends on December 10, 2024. File
| Photo Credit: PTI

The Appointments Committee of the Cabinet, on Monday (December 9, 2024), has appointed Sanjay Malhotra as the new Reserve Bank of India (RBI) Governor for a period of three years.

Mr. Malhotra was the Revenue Secretary to the Government of India.

Mr. Malhotra was a 1990 Batch Rajasthan Cadre IAS Officer,

Mr. Malhotra will replace Shaktikanta Das whose six year tenure at the helm of the Reserve Bank of India comes to an end on Tuesday (December 10, 2024).

Mr. Malhotra, 56, will be the 26th RBI Governor. He is an engineering graduate in computer science from the Indian Institute of Technology, Kanpur, and has a Master’s in Public Policy from Princeton University, the US.

In his career of over 33 years, he has worked in multifarious sectors, including power, finance and taxation, information technology, and mines, among others.

n his previous assignment, he held the post of Secretary in the Department of Financial Services under the Ministry of Finance.

He has extensive experience in finance and taxation at the state as well as the central government levels. As a part of his present assignment, he plays an instrumental role in tax policy formulation in respect of direct and indirect taxes.

Das was appointed as the 25th Governor of the RBI on December 12, 2018, after the abrupt exit of Urjit Patel.

(With inputs from PTI)

Published – December 09, 2024 05:38 pm IST

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RBI maintains tight vigil on financial market and takes action when necessary, says RBI Governor Shaktikanta Das

admin — Fri, 18 Oct 2024 11:41:24 +0000

File photo of RBI Governor Shaktikanta Das.
| Photo Credit: PTI

Reserve Bank Governor Shaktikanta Das on Friday (October 18, 2024) said that the central bank does not act like a policeman, but it maintains tight vigil on financial market and takes regulatory action whenever necessary.

The RBI Governor’s remark came a day after the central bank directed Sachin Bansal’s Navi Finserv and three other NBFCs to cease and desist from sanctioning and disbursing loans effective from the close of business of October 21 on material supervisory concerns, including usurious pricing.

“No…we are not policemen. We are watching. We are watching very closely. We maintain vigil over the credit markets and…when it becomes necessary, we take action,” he said at the India Credit Forum hosted by Bloomberg.

Observing that this is India’s moment, Mr. Das said: “India’s growth story is intact. Inflation has now come very much within the target range. It is expected to moderate.” In fact, there are significant risks, he said, RBI is very careful in monitoring the overall outlook with regard to both growth and inflation.

Published – October 18, 2024 05:11 pm IST

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