Economy - Reports
09-Dec-2025 18:11
RBI Governor observes that there has been steady improvement in health and operations of banking sector in 2025
Reserve Bank of India Governor Sanjay Malhotra met the Managing Directors and Chief Executive Officers of Public Sector Banks and select Private Sector Banks in Mumbai today. These interactions form part of the Reserve Bank's ongoing engagement with the senior management of regulated entities; the previous such meeting was held on January 27, 2025. The 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. He noted that the 125 basis points easing, combined with greater use of technology, should translate into lower intermediation costs and higher efficiency, thereby supporting sustainable growth and deeper financial inclusion. Emphasising better customer service, he 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. Appreciating banks' efforts on re-KYC and unclaimed deposits, he encouraged proactive outreach and sustained awareness campaigns. He reaffirmed the Reserve Bank's consultative approach, referring to recent initiatives in consolidation and simplification of regulations.
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