Mumbai, 7 November. Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said that the central bank is proceeding with caution, but the rules governing the activities of banks have recently been relaxed. He said that due to the regulatory reforms of RBI, State Bank of India (SBI) has recovered from losses in 2018 and has become a 100 billion dollar company.

The rules governing the activities of banks were relaxed

Sanjay Malhotra said this while addressing the Banking and Economics Conclave 2025 of State Bank of India (SBI) in the financial capital Mumbai. He said regulators need to take into account credit and deposit expansion, improved asset quality and profitability as well as increase in returns on assets and equity. He further said, ‘We should allow regulated entities to take decisions on the merits of each case.’

Indian banks are much more mature today than they were a decade ago

The RBI Governor said Indian banks are much more mature today than they were a decade ago. He said the purpose of the central bank is not to micromanage things. The transformation of India’s banking sector has been made possible by a strong regulatory framework and key policy measures initiated by the RBI and the government. No regulator should replace boardroom judgment and each case should be looked at on merits by a regulated entity.