Vault matters: RBI's new management is reorganizing priorities.

How the Reserve Bank of India would operate as an organization following Shaktikanta Das's tenure was a matter of some doubt. Are bankers worried about whether the incoming governor, Sanjay Malhotra, will be personable, open to industry input, and focused on growth? When Malhotra first met bankers on January 27, some of it was debunked. He gave them the gratifying impression that not much would change and that they could carry on enjoying the same level of comfort they had with Das and his crew under his leadership. Malhotra offered banks far greater comfort than they had previously when he spoke to the media and made his first monetary policy committee remark on February 7. The industry was greatly encouraged by the rate drop on expected lines and the extensive explanation that banks would not be able to implement the proposed standards for the liquidity coverage ratio, project finance, or even expected credit loss. However, it appears that the actions of the former governor have been completely undone by what transpired earlier this week. The previous risk weights on bank loans to NBFCs were reintroduced by the RBI. Although this won't actually allow non-banks to access credit lines, it does indicate that policies will change to focus on growth, a centrifugal factor.