The Reserve Bank of India (RBI), under Governor Sanjay Malhotra, is implementing measures to boost economic growth by facilitating increased cash flow into the financial system. These steps include reducing borrowing costs and relaxing prudential regulations that previously constrained lending to productive sectors.
This policy shift emphasizes economic stimulation over inflation control, as price pressures have recently eased. The measures are expected to spur credit growth by encouraging financial institutions to extend more loans, thereby supporting broader economic expansion.
