The Reserve Bank of India (RBI) expects healthy foreign capital inflows and a stronger balance of payments (BoP) this year following a series of measures unveiled on Friday to attract overseas funds and ease external financing conditions.
During a post-monetary policy conference here, RBI Governor Sanjay Malhotra said the central bank was not targeting any specific amount of inflows from the measures, but remained optimistic that the combined package would generate substantial overseas capital. “We don’t have a specific number. Obviously, all put together, it (inflow) will be very high,” Malhotra said.
The RBI announced multiple measures to attract foreign capital across government securities, overseas borrowings, foreign currency deposits, and equity investments. “These measures, along with the tax benefits provided by the government this morning, should help attract foreign capital for government borrowing,” he said in the policy statement.
4% inflation target not in abeyance: Central bank Guv
Malhotra said RBI’s 4 per cent medium-term inflation target was sacrosanct and has not been put in abeyance. Malhotra, who upped the central bank’s FY27 consumer inflation estimate by 0.5 per cent to 5.1 per cent, indicated that any future monetary policy action would depend on whether price rise became broad-based and persistent.
No decision on polymer banknotes yet: Malhotra
RBI Governor Sanjay Malhotra on Friday said a proposal to introduce polymer currency notes was under consideration of the central bank, and the idea was currently at a preliminary stage. Malhotra said no decision had been taken in the matter as yet, and the apex bank was examining the feasibility of such a move.
Fully prepared for Mythos cyber threat: Central bank
The Reserve Bank of India said it was fully prepared to deal with cyber security threats linked to the Mythos platform, and had already issued required advisories to regulated entities.
“We have issued the required advisories. We remain fully prepared in terms of handling cyber security threats of this nature as well as conventional threats,” RBI Deputy Governor Swaminathan J said during the post-monetary policy press conference.
