RBI Tells PAC It Is Optimistic on US Tariff Impact
Why in the news
Top RBI officials met Parliament’s Public Accounts Committee, reviewing banking reforms, and voiced a calm view on US tariffs.
Key facts
- Sanjay Malhotra and Rajeshwar Rao were optimistic: short-term effects under study, no major threat, and long-run gains if US-China trade ties weaken.
- Two PAC meetings: one with RBI, one with DFS and heads of SBI, Indian Bank, Canara Bank, IDBI and PNB.
| Topic | Detail |
|---|---|
| Unregulated lending | Banning of Unregulated Lending Activities Bill possibly next session |
| SBI 2018 | Query on a ₹8,000 crore infusion SBI never sought; CAG flagged it in 2023 |
| Branch access | Branch within 5 km promised in Naxal-affected and northeastern states in one year |
| NPAs | Falling; ideas: early warning for big defaulters, defaulter categories, entrepreneurial banking |
Significance
- Signals firmer handling of informal lending and a push for inclusion.
Exam angle
- Committee: Public Accounts Committee.
- RBI Governor: Sanjay Malhotra.