In 2025, the Reserve Bank of India carried out a major overhaul of banking rules. Led by Governor Sanjay Malhotra, the RBI simplified regulations and boosted credit growth. The changes aimed to unlock bank balance sheets and restore confidence. The shift marked a move toward growth-focused but stable regulation.

BulletsIn

•  2025 becomes turning point for Indian banking regulation
• RBI leads biggest regulatory overhaul in over a decade
•  Focus on simplifying complex and legacy rules
•  Thousands of old circulars reviewed and cleaned up
•  Easier norms for mergers and acquisitions financing
•  Steps taken to unlock stressed bank balance sheets
•  Interest rates cut to support credit-led growth
• Bank licensing reopened to encourage competition
•  RBI signals confidence in bank capital strength
•  New framework balances growth with stability