Indian banks today are far more mature than they were a decade ago and regulations cannot ignore developments such as strong expansion in credit and deposits, robust capital buffers, improved asset quality and profitability and jump in return on assets and return on equity, said RBI Governor Sanjay Malhotra.

“This evolution implies that the prudential rule books too should evolve in a calibrated manner as banks are now stronger, supervision more alert, even as alternative risk-bearing pillars have deepened and market-based risk transfer has become more effective,” Malhotra said at SBI’s 12th Annual Banking and Economics Conclave.

“The recent regulatory measures need to be seen in the backdrop of these developments which have shaped the banking industry and the financial system for the

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