Sanjay Malhotra on Friday made it clear that the Reserve Bank continues to move with “caution”, but the need to “display courage” has led it to easing of norms governing banks’ activities recently. Speaking at an event organised by SBI, Malhotra also made it clear that the higher responsibilities placed on banks are on the back of better performance and improved governance, and added that the central bank possesses sufficient tools to reign-in any errant behaviour.

 

He also said that the Reserve Bank of India does not wish to micromanage, adding that no regulator can or should substitute for boardroom judgment and each case has to be looked at with merit by a regulated entity. Last month, the Reserve Bank of India (RBI) announced a raft of measures and intents, including those on allowing banks to fund domestic acquisitions, and foreign borrowings for real estate sector, among others.