Reserve Bank of India (RBI) Governor Sanjay Malhotra met with top officials from public and private sector banks on Tuesday.
He urged banks to pass on the benefits of recent interest rate cuts to customers to support sustainable economic growth.
Since February 2025, the RBI has reduced the repo rate by 1.25 percentage points, bringing it down to 5.25%.
Banking Sector Growth and Vigilance
India recorded an 8% growth in the first half of the current financial year.
During the meeting with bank MDs and CEOs, Governor Malhotra highlighted that the banking sector’s health and performance have steadily improved in 2025.
However, he cautioned banks to avoid complacency and stay alert in a rapidly changing environment.
Focus on Technology, Efficiency, and Customer Service
Governor Malhotra said the repo rate cut, combined with increased use of technology, should reduce costs, improve efficiency, and promote financial inclusion.
He urged banks to focus on:
Better customer service and reducing complaints
Strengthening internal systems
Tackling digital fraud risks with robust security measures
He also appreciated banks’ work on customer re-KYC and handling unclaimed deposits, encouraging proactive outreach and awareness campaigns.
RBI’s Collaborative Approach
The meeting included Deputy Governors T. Rabi Shankar, Swaminathan J., Poonam Gupta, and S.C. Murmu, along with Executive Directors overseeing supervision, regulation, enforcement, consumer training, and financial inclusion.
Governor Malhotra reaffirmed RBI’s consultative approach, highlighting recent efforts to simplify and strengthen regulations.
This meeting is part of RBI’s regular interactions with senior bank management, with the last one held on January 27, 2025.
