India’s economy registered 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.
Technology, Efficiency, and Customer Focus
The RBI Governor said the repo rate cut, combined with greater 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 stronger 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 is part of RBI’s regular engagement with senior bank management, with the last meeting held on January 27, 2025.