Reserve Bank of India (RBI) Governor Sanjay Malhotra has urged Managing Directors and Chief Executive Officers of public and select private sector banks to reduce intermediation costs and improve operational efficiency, citing the 125 basis points (bps) policy rate reduction since February.

“The Governor noted that the 125 basis point easing, combined with greater use of technology, should translate into lower intermediation costs and higher efficiency, thereby supporting sustainable growth and deeper financial inclusion,” the RBI said in an official statement.

These interactions are part of the Reserve Bank’s ongoing engagement with senior management of regulated entities, following similar meetings held in January 2025.

The RBI Governor observed that while there has been steady improv

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