New Delhi, Dec 10 || The Reserve Bank of India (RBI) Governor Sanjay Malhotra has urged Managing Directors and Chief Executive Officers of public and select private banks to lower intermediation costs and improve operational efficiency citing the 125 basis points (bps) policy rate reduction since February.
“The governor noted that the 125 basis point easing, combined with greater use of technology, should translate into lower intermediation costs and higher efficiency, thereby supporting sustainable growth and deeper financial inclusion,” the official statement from RBI said.
These interactions form part of the Reserve Bank’s ongoing engagement with the senior management of regulated entities after similar meetings in January 2025.
The RBI Governor observed that while there has been steady improvement in the health and operations of the banking sector in 2025, banks must avoid complacency and remain vigilant in a dynamic environment.
Further, Malhotra urged banks to focus on reducing grievances and strengthening internal systems. He highlighted the growing risks from digital frauds and called for more robust, intelligence-driven safeguards.