The Nifty Bank - comprising stocks of 12 major lenders in the country - gained as much as 0.80 per cent during the session, led by State Bank of India, ICICI Bank and Punjab National Bank.
Analysts say some profit-booking can be expected at higher levels with major domestic events now behind.
The RBI last week maintained key policy rates at existing levels as expected, citing growth- and inflation-related concerns. RBI Governor Shaktikanta Das said the country's prospects have brightened with progress on COVID-19 vaccines, consumer confidence has turned positive and projected real GDP for the current financial year to contract just 7.5 per cent.
The status quo by the RBI's Monetary Policy Committee came days after official data showed the country's GDP contracted a better-than-expected 7.5 per cent in the July-September period following a record slump in the previous quarter.
Shares elsewhere in Asia retreated from a record peak on Monday after a report by news agency Reuters that the US was preparing to impose sanctions on some Chinese officials highlighted geopolitical tensions. MSCI's broadest index of Asia-Pacific shares outside Japan was last seen trading 0.30 per cent lower, following four straight sessions of gains. Japan's Nikkei 225 benchmark was also down 0.30 per cent.
The E-Mini S&P 500 futures traded 0.10 per cent lower after a positive start, indicating a sluggish session in the US on Monday.
The selloff began after Reuters exclusively reported, citing sources, that the US was preparing sanctions on at least a dozen Chinese officials over their alleged role in Beijing's disqualification of elected opposition legislators in Hong Kong.
The move comes as US President Donald Trump's administration keeps up pressure on Beijing in his final weeks in office.
Asian markets had initially started the week on a positive note on hopes of a faster global recovery as coronavirus vaccines get rolled out, starting this week in Britain.
Domestic stock markets registered new all-time highs in early trade on Monday, continuing a rally that took benchmark indices Sensex and Nifty to record highs last week. The S&P BSE Sensex index rose 105.43 points or 0.23 per cent to touch an all-time high of 45,184.98 in the first few minutes of trade, and the broader NSE Nifty 50 benchmark climbed to a record 13,293.50, adding 34.95 points or 0.26 per cent from its previous close. Gains in energy, metal and PSU banks supported the markets.