Reserve Bank of India (RBI) Governor Sanjay Malhotra has explained why core investment companies (CICs), including entities such as Tata Sons, may be required to register with the central bank, highlighting their position within corporate groups and their access to public funds. Speaking at the NDTV World Summit 2026, Malhotra said non-banking financial companies (NBFCs) and CICs are required to register because of the role they play in holding companies and managing funding and leverage across corporate groups.
“NBFCs and CICs like Tata Sons are required to be registered because of the system in place, as they sit on top of companies where the leverage funds and can leverage funds,” he said.
Malhotra clarified that there is an exception in cases where a CIC does not have direct access to public funds. He did not comment specifically on Tata Sons' regulatory status, but said entities that are required to register, fall within the upper layer of the regulatory framework and have direct access to public funds are expected to comply with the applicable rules.
Malhotra's comments come amid continued attention on the regulatory requirements applicable to large corporate holding companies and the circumstances under which they must register with the RBI.
RBI Governor Says India's External Position Remains Strong
Beyond the regulation of CICs, Malhotra expressed confidence in India's medium-term balance of payments outlook and the resilience of its external sector. He said services exports continue to perform well and that the country's foreign exchange reserves are more than sufficient to meet its external commitments, including repayments related to Foreign Currency Non-Resident (Banks), or FCNR(B), deposits.
READ | RBI Guv Reaffirms Price Stability Is Key Objective While Supporting Growth
While a decline in crude oil prices would provide additional support, Malhotra said India's existing buffers leave the economy well placed to withstand external shocks.
The RBI Governor also said high-frequency economic indicators point to sustained and broad-based growth, with output holding up across multiple sectors. He noted that growth is not being driven solely by consumer demand. Capital demand is also receiving support from investment by artificial intelligence and technology companies.
On inflation, Malhotra said headline measures remain within the RBI's tolerance band, even as price pressures persist. Government measures to cushion the impact of crude oil prices have also helped contain pressure on domestic inflation.
RBI Monitoring Banking System Risks
Addressing financial stability, Malhotra said the RBI has a robust regulatory and supervisory framework and remains in regular communication with government authorities and banking institutions. The central bank is working proactively to identify vulnerabilities and strengthen the security and resilience of banks' information technology infrastructure, he said.
Malhotra also cautioned against interpreting India's focus on domestic growth and inflation while formulating monetary policy as evidence that the country is insulated from global developments. External factors continue to influence domestic inflation, economic growth and interest rates, he said. Although policy measures have helped cushion some global shocks, persistent external pressures remain relevant to India's economic outlook.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.