RBI's Public Speeches: A Subtle Hint at Regulatory Actions

Public speeches by RBI officials have become a tool for signaling crackdowns, with the regulator using them to hint at upcoming regulatory actions against specific institutions or even some lending practices. This strategy has been effective in slowing down unsecured loan growth and reducing the risk of default rates. However, experts say that the RBI should consider a more balanced approach that includes engaging with industry stakeholders through discussions and issuing formal circulars to provide valuable insights into the regulator's evolving vision.