The Reserve Bank of India’s governor, Sanjay Malhotra, called on the managing directors and CEOs of public and a handful of private banks to cut their intermediation fees and streamline operations, pointing to the 125 basis‑point drop in the policy rate that began in February. In a statement released by the RBI, the governor said the combined effect of the rate cut and broader technology adoption should help bring costs down, boost efficiency, foster long‑term growth, and deepen financial inclusion.
This outreach follows a similar meeting held earlier this year with senior bank leaders and is part of the RBI’s continued dialogue with the heads of regulated institutions. Malhotra noted that while the sector’s health and performance have improved steadily in 2025, firms should stay sharp and not become complacent in a fast‑changing environment.
He urged banks to address customer complaints more swiftly and to tighten internal controls. Highlighting the rising threat of digital fraud, he called for stronger, data‑driven protective measures. The governor praised banks’ progress on re‑KYC procedures and the handling of unclaimed deposits, encouraging them to keep up active outreach and persistent awareness efforts. He also reaffirmed the RBI’s consultative stance, citing recent steps toward regulatory consolidation and simplification.
During the meeting, participants exchanged views on a broad spectrum of policy, supervisory, and operational issues. The discussion came after the Monetary Policy Committee reduced the repo rate by 25 basis points to 5.25 percent—the lowest in three years. RBI transmission data showed that the weighted average domestic term‑deposit rate fell by 102 basis points from February to September, while new rupee‑loan rates dropped by 73 basis points.
In its December policy review, the RBI proposed a two‑month programme beginning on 1 January 2026 to clear complaints that have been pending with the RBI Ombudsman for more than a month.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
