RBI governor meets bank CEOs to discuss AI and geopolitics

Central bank governor Sanjay Malhotra held talks with bank chief executives on Tuesday. The discussions covered artificial intelligence, geopolitical issues and new expected credit loss guidelines. Some banks also shared estimates on inflows under the FCNR(B) scheme.

Central bank governor Sanjay Malhotra met bank chief executives on Tuesday. Key topics included geopolitical complexities, artificial intelligence and the new expected credit loss guidelines.

Banks provided their FCNR(B) scheme inflow estimates during the meeting. The talks also noted that oil prices have spiked over nine percent after recent military actions.

The meeting focused on these areas as part of routine central bank engagement with the banking sector.

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RBI Governor Sanjay Malhotra called on banks to treat micro, small and medium enterprises as key growth partners rather than mere compliance obligations. He made the remarks while addressing International MSME Day.

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The Reserve Bank of India cautioned that an escalation in the West Asia conflict could derail the country's positive growth trajectory. The central bank assessed that the impact is likely to remain contained in the near term.

The Reserve Bank of India has maintained its policy rate at 5.25 percent with a neutral stance while introducing steps to attract foreign capital.

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Banking system liquidity has dropped to its lowest level this fiscal year, pushing up money market rates. Advanced tax outflows triggered the decline. The Reserve Bank of India is offering temporary support through variable rate repo operations.

 

 

 

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