Indian banks far more mature than a decade ago: RBI Governor
Sanjay Malhotra has said that India’s banking sector has become significantly more mature, resilient and better governed compared to a decade ago, reflecting the impact of regulatory reforms, stronger risk management practices and improved financial stability.
Speaking on the evolution of the banking system, the RBI Governor highlighted that Indian banks have substantially strengthened their balance sheets, enhanced capital positions and improved asset quality over the years. He noted that the sector is now better equipped to manage economic uncertainties and support the country’s growth ambitions.
The Governor observed that regulatory measures implemented by the Reserve Bank of India have contributed to stronger governance standards, improved supervision and greater operational resilience. Efforts to address stressed assets, strengthen risk management frameworks and improve transparency have played a key role in transforming the banking landscape.
Industry experts noted that the decline in non-performing assets, stronger provisioning coverage and robust capital adequacy levels have enhanced the sector’s ability to withstand financial shocks. The adoption of digital technologies, data-driven supervision and advanced risk monitoring systems has also strengthened banking operations.
The Governor further emphasised the importance of maintaining prudent lending practices, strong governance and customer-focused services as the financial system continues to evolve. He stressed that banks must remain vigilant against emerging risks, including cybersecurity threats, technological disruptions and global economic uncertainties.
The remarks underscore the significant progress made by India’s banking sector and its growing capacity to support sustainable economic development and financial stability.
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