Business
RBI governor warns resilience is not future immunity
The Hindu BusinessLine··3 Oct
Reserve Bank of India Governor Sanjay Malhotra said today's financial resilience does not guarantee tomorrow's immunity. Speaking at the Kautilya Economic Conclave in the national capital, he called for continued vigilance against emerging vulnerabilities across banks and NBFCs. He said the next shock may begin outside banking, through a geopolitical event, cyber attack or technological failure.
Prism
What It Means For You
- Depositors and NBFC borrowers hear the central bank stressing healthy balance sheets are not a free pass on new risks.
- Firms reliant on payment systems and third-party tech providers sit inside the system-wide resilience perimeter he described.
- Investors in AI-linked assets were named among global risks if an investment or earnings cycle slows.
What's Happening
- Malhotra outlined five priorities for policymakers focused on withstanding shocks rather than preventing every one.
- He said cleaning up early-2000s excessive lending and NPAs took nearly a decade, so complacency carries high cost.
- He backed the separation principle: monetary policy for prices, and targeted tools for financial stability risks.
Risks He Flagged
- He listed rising global debt, stretched AI-linked valuations, elevated leverage, private credit and cyber risks.
- He said data on NBFIs, interconnected exposures and cross-border positions can remain fragmented.
- Principal Secretary P K Mishra, speaking at the same conclave, said resilience is not free and asked whether the premium is justified by the risk.
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