Last week’s statement by the RBI Governor after the Monetary Policy Committee meeting had more to do with far-reaching liberalisation of regulations for the banking sector than with the repo rate. With media attention fixated on the possibility of a rate cut, the RBI’s decision to “pause” was wrongly seen as the headline. In reality, the story lay elsewhere.

In one of its most comprehensive reform pushes in recent years, the RBI unveiled a sweeping set of 22 regulatory changes for the banking sector. This package signals a shift in the central bank’s approach from incrementalism to bold structural overhauls. The breadth of these reforms reflect the RBI’s renewed confidence in the resilience of Indian banks and its willingness to recalibrate the regulatory playbook in line with national pr

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