RBI Governor Sanjay Malhotra outlines five key priorities for financial stability
Reserve Bank of India (RBI) Governor Sanjay Malhotra emphasized that financial instability anywhere can threaten financial stability everywhere. Addressing financial sector regulators, he outlined five key priorities to build a resilient financial system: strengthening systemic resilience against shocks, improving monitoring and assessment frameworks with granular data, ensuring financial systems can withstand geopolitical and technological risks, enhancing system-wide resilience across sectors and institutions, and boosting trust through innovation, AI, and tokenisation. He stressed that innovation must preserve the fundamental properties of trust.
Key Points
- RBI Governor Sanjay Malhotra stressed that financial instability in one region can threaten global financial stability.
- Policy makers must prioritize proactive regulation, better data, and credible safety nets to withstand systemic shocks.
- Systemic resilience requires addressing interconnected exposures, cross-border positions, and dependencies across NBFCs and financial markets.
- Technological innovations like AI and tokenisation must be balanced with foundational properties of trust and financial integrity.
Exam Facts
- RBI Governor: Sanjay Malhotra
- Event mentioned: 5th Kautilya Economic Conclave
Read it. Retain it. Recall it.
Daily MCQs with explanations, one-line fact cards and topic-wise accuracy. Free on Android, no ads.