RBI deputy governor Rohit Jain told reporters at the SBI Banking & Economics Conclave that RBI has been consulting with banks on their liquidity positions following the FCNR‑B inflows.
He said RBI is not directing banks to any particular sector and will let them deploy the funds based on their credit pipelines and asset‑liability matching.
Jain noted that credit demand is broad‑based, with all sectors showing reasonable growth. A Mumbai auto‑parts supplier, Arjun Patel, said he will apply for a loan to double his factory after the announcement.
The festive season is expected to further boost borrowing, and RBI will continue monitoring deployment patterns, ready to review policy if necessary ahead of the peak.
RBI expects banks to reflect the liquidity in their lending books, potentially tightening credit conditions for the next quarter.