RBI’s latest policy initiatives point to a deeper shift in how banking growth will be defined in the coming cycle, less by volume alone and more by quality, trust and informed participation.
FinTech BizNews Service
Mumbai, 6 February 2026: The Monetary Policy Committee (MPC) held its 59th meeting from February 4 to 6, 2026, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya attended the meeting.
The RBI Governor today made a Statement on Developmental and Regulatory Policies. This Statement sets out various developmental and regulatory policy measures relating to (i) Regulations; (ii) Payments System; (iii) Financial Inclusion; (iv) Financial Markets; and (v) Capacity Building.
The perspectives of senior bankers focus on how the RBI’s latest measures signal a shift towards quality-led banking growth, with specific emphasis on senior citizen fraud protection; liquidity supply; support to NBFCs, REITs (through Bank funding) and UCBs; expansion of collateral-free MSME lending, lending to REITs, and the evolving role of KYC as a foundation of trust in digital banking.
Mr Salee S Nair, MD and CEO, Tamilnad Mercantile Bank:
"RBI’s latest policy initiatives point to a deeper shift in how banking growth will be defined in the coming cycle, less by volume alone and more by quality, trust and informed participation. Measures to protect senior citizens from digital fraud recognise that inclusion without confidence can weaken the system, and banks must design assisted, secure pathways for customers who are newly digital. The decision to raise the collateral-free MSME loan limit to Rs20 lakh acknowledges that India’s next phase of enterprise growth will be driven by small, often informal businesses that require timely, unsecured credit rather than complex structures. Similarly, permitting banks to lend to REITs signals a maturing financial ecosystem where long-term capital, asset monetisation and balance-sheet discipline can coexist. For banks like Tamilnad Mercantile Bank, with deep roots in MSME and community banking, these measures reinforce the need to align credit expansion with customer understanding. In that context, KYC is not compliance hygiene but the starting point of trust, enabling safer digital adoption, better risk assessment and sustainable banking relationships over time."
Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank
“The RBI’s decision to maintain the policy rate while continuing with a neutral stance reflects a balanced approach amid evolving global and domestic conditions. With inflation remaining benign, the policy framework provides stability and adequate headroom to support growth while preserving macroeconomic discipline.
The central bank’s confidence in India’s growth outlook underlines the resilience of domestic demand and the effectiveness of recent policy measures. We also welcome the RBI’s continued emphasis on strengthening the financial ecosystem through customer protection, improved liquidity management, and enhanced credit flow to MSMEs, alongside steps to deepen financial markets. At Indian Overseas Bank, we view this stance as supportive of sustainable growth and remain focused on responsible credit delivery and customer-centric banking.”
Mr. Madan Sabnavis, Chief Economist, Bank of Baroda:
“The policy has left repo rate unchanged as expected and hence the markets have been quite unaffected. Quite expectedly too there have been no forecasts made on GDP and inflation next year as the new series are expected this month. Interestingly, while there is assurance on liquidity supply by RBI, no measures have been announced which means that they will be announced on need based.
Again, in line with the push given by the Budget to MSMEs, the RBI has increased the limit for collateral-free loans to Rs 20 lakh. Hence there seems to be steady follow up action to the Budget announcements.
P D Singh, CEO, India & South Asia, Standard Chartered Bank:
“The emphasis on enhancing financial inclusion through an increase in loan limits to MSMEs, supporting NBFCs, REITs (through Bank funding) and UCBs, further development of the corporate bond market and encouraging foreign flows are all measures that will help add further depth to the market.”
Ms. Anitha Rangan, Chief Economist, RBL Bank
Batting for continuity
“As expected, RBI held the policy rates unchanged keeping the stance neutral. However, the surprise was 6/6 members voting unanimously and somewhat that there were no announcement on liquidity. The policy statement has caution all over led by externalities. Also, MPC would wait for the new inflation and GDP series and give revised forecasts in April. Nevertheless, in the existing framework they have revised their inflation estimates upward while firming up growth suggests that there is a long pause ahead. Growth is firm and inflation to return to 4-5% level. But the read was the upside risks from externalities. While RBI said that they would be pre-emptive on liquidity, no announcement of any structural measures is disappointing. While they acknowledge higher G-sec yields not announcing measures or announcing measures ‘as and when needed’ will only keep volatility active. In all while the policy in terms of rates is batting of pause, no liquidity measures was announced in the policy and RBI kept the liquidity ‘on tap’ and proactive based on need.”
