'Balanced Moves, Simplified Regulations': RBI Governor Reflects On Year Of Policy Action
"We made substantial progress in simplification of the regulatory architecture by consolidating a large number of regulatory instructions," said Governor Sanjay Malhotra.
The Reserve Bank of India's policy interventions in 2025 were calibrated to balance stability with growth and institutionalised a structured framework for simplified regulations, Governor Sanjay Malhotra said in his year-end letter to staff on Wednesday.
He noted that the year unfolded against a "complex global backdrop" marked by geopolitical uncertainties, uneven growth and volatile financial markets.
"ln this challenging environment, our policy interventions were calibrated to balance stability with growth while ensuring that the banking and the financial sectors continue to support our nation's development aspirations. We made good progress in all domains," the letter said.
"We institutionalised a structured framework for the formulation of regulations. We made substantial progress in simplification of the regulatory architecture by consolidating a large number of regulatory instructions," it added.
Malhotra said the regulatory reforms strengthened the financial sector, enhanced the flow of credit, improved the competitiveness and efficiency of the regulated entities and reinforced consumer centricity.
The RBI in November scrapped over 9,000 circulars and consolidated rules into 244 Master Directions across 11 types of regulated entities to ease regulatory framework and improve compliance. Among the repealed circulars, 3,809 were subsumed or incorporated into master circulars and the rest 5,673 junked for being obsolete.
The central bank lowered the repo rate four times this year, bringing the benchmark interest rate from 6.5% at the start of 2025 to 5.25% by the end.
Retail inflation averaged 2.3% between January and November, within the RBI's comfort zone, while quarterly GDP growth averaged 7.8% during the January-September period.
"We must persist with strengthening monetary policy framework, sharpening supervision, calibrating regulation, deepening financial markets, and improving payments and currency management," the governor said.
Read RBI Governor's Full Letter
Dear colleagues,
As we welcome the New Year, I extend my warm greetings to you. The turn of the year offers an opportunity to reflect on our journey through 2025, when we celebrated our 90th anniversary and to reaffirm our shared commitment to the public purpose that defines the Reserve Bank.
Our journey in 2025 unfolded against a complex global backdrop marked by geopolitical uncertainties, uneven growth and volatile financial markets. In this challenging environment, our policy interventions were calibrated to balance stability with growth while ensuring that the banking and financial sectors continue to support our nation's development aspirations.
We made good progress in all domains. We institutionalised a structured framework for the formulation of regulations. We made substantial progress in simplification of the regulatory architecture by consolidating a large number of regulatory instructions. We also reviewed many regulations thereby strengthening the financial sector, enhancing the flow of credit, improving the competitiveness and efficiency of the regulated entities and reinforcing consumer centricity.
We also improved internal governance. RBI's Citizen's Charter, including services and timelines, was reviewed. Most of the services were made online. 99.4 per cent applications were disposed off within the stipulated timelines. All CPGRAMS grievances are being resolved within timelines since November 14, 2025.
A vital dimension of our work this year was the emphasis on customer service and grassroots engagement. Through the collaborative efforts of the Reserve Bank, banks, and other stakeholders, we conducted initiatives such as re-KYC camps and unclaimed deposits campaigns. The rollout of the National Strategy for Financial Inclusion (2025–2030) further reinforced our commitment to deepening and sustaining financial inclusion. A number of measures were taken to improve consumer services and grievance redressal.
I commend you for your contribution in maintaining the rich legacy and further enhancing it.
As we look ahead to 2026, our responsibilities will continue to expand in a rapidly evolving economic and financial landscape shaped by technological change, geoeconomic shifts, and rising public expectations. We must persist with strengthening monetary policy framework, sharpening supervision, calibrating regulation, deepening financial markets, and improving payments and currency management. This will require us to sharpen knowledge, enhance analytical capabilities, embrace technology, and continuously make improvements in processes. Customer centricity and financial inclusion must remain at the heart of our work.
The Reserve Bank's strength has always flowed from its people and from a shared belief that our work, though often unseen, makes a meaningful difference to the nation. Let that purpose continue to guide us on the way forward in our pursuit of excellence and perfection. This calls for not just technical excellence, but also a commitment to our core institutional values – integrity, independence, efficiency, humility and a deep sense of public service. Guided by these core values, let us continue to redefine our benchmarks and scale new heights in the service of the nation.
I wish you and your loved ones a very happy new year – one filled with good health, fulfilment and renewed energy for the journey ahead.
Warmly,
Sanjay Malhotra
