How Sanjay Malhotra quietly liberalized RBI in his first year

Bankers say the RBI feels more open, accessible, far more willing to rethink old rules

- Subhana Shaikh [e-mail]

When Sanjay Malhotra walked into Mint Street a year ago, few expected him to move as quickly and as boldly as he did to reform one of the country’s most tightly controlled sectors.

Twelve months on, bankers believe the Reserve Bank of India (RBI) suddenly feels more open and accessible, and far more willing to rethink old rules.

In his first year as RBI governor, Malhotra has presided over some of the most consequential and liberalising shifts in Indian banking regulation in nearly a decade. Bankers and market experts described him as “one of the most open governors” the financial sector has seen ~ a technocrat who is willing to listen, debate, rethink and, most importantly, trust institutions to govern themselves provided they strengthen their supervision.