RBI Announces Major Regulatory Reforms for the Banking SectorBesides maintaining the policy rates, the RBI announced three significant regulatory initiatives aimed at modernising India’s banking framework. These measures focus on strengthening the cooperative banking sector, improving risk management practices, and enhancing transparency in lending. The central bank reiterated its commitment to conducting two-way liquidity operations to ensure that the weighted average call rate remains closely aligned with the policy repo rate. BorrowersRetail and corporate borrowers may not see an immediate change in lending rates because the repo rate remains unchanged. Simultaneously, it is advancing structural reforms that seek to modernise banking regulation, strengthen cooperative banking institutions and improve fairness and transparency in lending practices.