The Reserve Bank of India (RBI) is considering relaxing rules for lenders, the regulator said on Friday, observing that it has built up strong capital buffers from improved profitability and asset quality. “We will ensure that our financial system evolves responsibly,” RBI Governor Sanjay Malhotra said at SBI Banking & Economics Conclave 2025. “No regulator can afford to situate the system at a point in time,” Malhotra said. Highlighting the strength of the country’s banking system and the growth over the last decade, the governor highlighted that “regulation cannot ignore this performance, these changed realities”.