Reserve Bank of India (RBI) Governor Sanjay Malhotra has assured that India has adequate foreign exchange reserves to meet repayment obligations under Foreign Currency Non-Resident (Bank) deposits, expressing confidence in the resilience of the country's external sector amid global economic uncertainty.
Speaking at the NDTV World Summit 2026, Malhotra said India's foreign exchange reserves were sufficient to meet the payouts, adding that the central bank's priority was to ensure there was no disruption in the forex market.
“India already has sufficient forex reserves,” the governor said, expressing optimism about the medium-term outlook for the country's balance of payments and external sector. He also pointed to the continued strength of services exports as a factor supporting India's external position.
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Malhotra said the Reserve Bank remained committed to ensuring orderly movements in the rupee, even as global markets navigated elevated inflation and uncertainty. He added that India's macroeconomic fundamentals remained strong.
On the domestic economy, the RBI governor said growth had held up well, with high-frequency indicators pointing to continued momentum. He described growth as broad-based, saying it was not being driven by consumption alone, but was also supported by demand from artificial intelligence and technology companies.
Exports, too, had performed well, he said, while cautioning that crude oil prices needed to decline to further support the external sector. Government measures to cushion the impact of crude oil prices had also helped the economy, Malhotra added.
The governor acknowledged that inflation remained elevated globally but said it was still within India's tolerance band. He reiterated that price stability remained a key objective for monetary policy, alongside supporting sustainable economic growth.
Malhotra said the RBI had raised the repo rate by 25 basis points and changed its policy stance to tightening, underlining the central bank's resolve to meet its objectives. He stressed that the role of a central bank remained unchanged despite increasingly demanding conditions for policymakers.
He also clarified that monetary policy was not a tool for ensuring financial stability, highlighting the distinction between managing inflation and addressing risks in the financial system.
On banking sector oversight, Malhotra said the RBI maintained a strong regulatory and supervisory framework and was working to identify potential vulnerabilities. The central bank was also in constant discussions with relevant authorities to strengthen banks' information technology systems.
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