Avoid complacency and remain vigilant in a dynamic environment, RBI Guv Malhotra tells top bankers

Sanjay Malhotra, Governor of the Reserve Bank of India. | Photo credit: DHIRAJ SINGH

The aforementioned warning came even as he emphasized that there will be a steady improvement in the health and operations of the banking sector by 2025.

In the latest bi-monthly monetary policy statement, Malhotra emphasized that system-level financial parameters related to capital adequacy, liquidity, asset quality and profitability of Scheduled Commercial Banks (SCBs) remain robust.

Rate reduction

During the meeting with the Bank’s CEOs, he noted that the easing of the repo rate by 125 basis points (from 6.50 percent to 5.25 percent), combined with greater use of technology, should translate into lower intermediation costs and higher efficiency, supporting sustainable growth and deeper financial inclusion.

In his bi-monthly monetary policy statement, the Governor said that in response to the cumulative reduction in policy repo rate by 100 basis points, the weighted average lending rate (WALR) of Scheduled Commercial Banks fell by 69 basis points for fresh rupee loans in February-October 2025.

The moderation in the weighted average lending rate (WALR) of outstanding rupee loans was 63 basis points. The transmission has had a broad base in all sectors.

“On the deposit side, the weighted average domestic term deposit rate (WADTDR) on new deposits has declined by 105 basis points, while that on outstanding deposits has declined by 32 basis points over the same period,” the governor said on December 5.^e statement.

Complaints recovery

Malhotra emphasized on better customer service and urged top bankers to focus on reducing complaints and strengthening internal systems.

In his December 5^e In his statement, the Governor noted that in the recent past, due to receipt of a large number of complaints, dependence on the RBI Ombudsman has increased.

“I urge all regulated entities to put customers at the center of their policies and operations, improve customer service and reduce complaints. We further propose to conduct a two-month campaign from January 1 next year with the aim of resolving all complaints pending with the RBI Ombudsman for more than a month. I appeal for the support of all regulated entities in this endeavor,” he then said.

Digital fraud

The governor, during his meeting with bankers, highlighted the growing risks of digital fraud and called for more robust intelligence-based safeguards.

He appreciated the banks’ efforts in re-KYC and unclaimed deposits and encouraged proactive outreach and sustained awareness campaigns.

Bankers shared their feedback and perspectives on a wide range of policy, supervisory and operational matters.

Deputy Governors T Rabi Sankar, Swaminathan J, Poonam Gupta and SC Murmu, along with the Executive Directors responsible for supervision, regulation, enforcement and consumer education and financial inclusion were present at the meeting.

Published on December 9, 2025