New Delhi, December 10 (IANS). Reserve Bank of India (RBI) Governor Sanjay Malhotra asked managing directors and CEOs of government and select private banks to reduce intermediation costs and increase efficiency in their banking system.
This statement of RBI Governor has come at a time when recently the Monetary Policy Committee (MPC) has reduced the interest rate by 25 basis points or 0.25 percent, due to which the repo rate has come down to 5.25 percent, which was earlier 5.50 percent.
From this February, RBI has reduced the repo rate by 125 basis points.
“The Governor has said that the interest rate reduction of 125 basis points and greater use of technology will reduce intermediation costs and increase efficiency, thereby promoting sustainable growth and financial inclusion,” the RBI said in an official statement.
The statement said these conversations are part of the Reserve Bank’s ongoing engagement with senior management of regulated entities following similar meetings held in January 2025.
Also, Malhotra urged banks to focus on reducing complaints and strengthening internal systems. He asked banks to focus on the increasing risks of digital fraud and adopt more robust, intelligence-based security measures.
The RBI Governor appreciated the efforts being made by banks regarding ReKYC and unclaimed deposits and encouraged proactive outreach and sustained awareness campaigns.
The statement said the participants in the meeting shared their feedback and views on various policy, supervisory and operational matters.
RBI’s monetary transmission data showed that banks’ weighted average domestic fixed deposit rates declined by 102 basis points between February and September, while the interest rate on new rupee loans declined by 73 basis points.
–IANS
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