Cautioning lenders against slipping into complacency despite a year of steady improvement, Reserve Bank of India Governor Sanjay Malhotra on Tuesday urged banks to remain vigilant in a dynamic environment.
The governor met managing directors and chief executives of public sector banks and select private banks in Mumbai, as part of the central bank’s ongoing engagement with the senior leadership of regulated entities. The last such interaction was held in January 27.
Malhotra on rate cut
He said the RBI’s 125-basis-point easing cycle, together with greater adoption of technology, should translate into lower intermediation costs, higher operational efficiency and deeper financial inclusion.
Underscoring the need to enhance customer service, he urged banks to focus on reducing grievances and strengthening internal systems. The governor also called for more robust, intelligence-driven safeguards to protect customers and system integrity, given rising risks from digital frauds.
Malhotra on progress made on re-KYC
He acknowledged the progress made on re-KYC compliance and efforts to trace unclaimed deposits, encouraging banks to sustain outreach and awareness initiatives.
Deputy Governors T Rabi Sankar, Swaminathan J, Poonam Gupta and SC Murmu, along with executive directors overseeing supervision, regulation, enforcement and consumer education, participated in the meeting.
Bank chiefs shared their feedback and perspectives on policy, supervisory and operational matters.