mumbai, Nov. 8 -- The Reserve Bank of India (RBI) is looking to promote efficiency and innovation without undermining financial stability, governor Sanjay Malhotra said on Friday, stressing that every regulatory change carries a cost that the central bank is mindful to minimize. "We recognize that just like there are no free lunches, regulation to enhance stability too is not devoid of costs. There are trade-offs between stability and efficiency," Malhotra said at the SBI Banking and Economics Conclave 2025 in Mumbai. "It will be our attempt to strike the right balance, keeping in view the benefits and costs of each and every regulation." Malhotra emphasized that short-term growth achieved at the cost of financial stability can have "bigger consequences for long-term growth". Research shows financial instability may not only more than offset the gains of higher short-term growth, but also make recovery more distressful and longer, he said. The slew of over 20 regulatory proposals announced on 1 October-along with the monetary policy statement-including steps to improve banking competitiveness, credit flow, ease of doing business, consumer satisfaction, foreign exchange management and rupee internationalization, were designed to "maintain the balance between the drive to innovate and grow and the RBI's duty to protect," the governor said....