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Reserve Bank of India Governor Sanjay Malhotra said on Friday that the country's commercial lenders are much more mature today than they were a decade ago. He also reiterated that the central bank is focused on maintaining a balance between growth and stability.

Speaking at SBI's Banking and Economics Conclave in Mumbai, he said that no regulator should substitute for boardroom judgement. The RBI does not aim to micromanage things in that regard, he said, emphasising that each case must be looked at with merit by a regulated entity.

The recent measures undertaken by the RBI, he said, are aimed at preserving financial stability in the country's banking system. He was referring to a series of RBI proposals announced last month, aimed at strengthening the domestic financial space.

Here's a summary of some of those measures:

The RBI chief also said that permitting banks to finance merger and acquisition (M&A) activity will benefit the real economy and lead to better capital allocation.

Stating that regulators need to be watchful of aspects like credit and deposits expansion, improved asset quality and profitability, and returns on assets and equity, he said the role of a regulator is like a gardener's.

A central bank monitors the growth of a plant and prunes unwanted growth to "shape a collective, orderly, beautiful garden", he elaborated.