RBI Update: RBI has made these 5 announcements, which will bring money into the economy...
Although the Reserve Bank of India's MPC did not make any changes to the repo rate, it made several announcements that could boost the country's economy in the coming days. On Wednesday, the Reserve Bank of India announced several measures to improve the flow of credit to the real economy. The key repo rate remained unchanged. RBI Governor Sanjay Malhotra made five key announcements to boost lending and reduce financing costs. Let us also tell you about the RBI's announcements to boost lending...
RBI Governor Made These 5 Major Announcements
Loans for Corporate Acquisitions: Indian companies obtain the financing they need for acquisitions from banks. The RBI has announced the creation of a strong structure for this loan. This structure will increase lending opportunities and promote expansion and consolidation.
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Capital Market Loans: The RBI has announced the removal of regulatory limits on loans against listed debt securities. The limit for loans against shares has been increased from ₹20 lakh per person to ₹1 crore. The IPO financing limit will be increased from ₹10 lakh per person to ₹25 lakh.
The 2016 framework will be abolished: The RBI will end the framework introduced in 2016 that discouraged banks from lending to borrowers with loan limits exceeding ₹10,000 crore.
Finance for Infrastructure Projects: A reduction in the risk of NBFC loans to ongoing, high-quality infrastructure projects has been announced. This is a major step for NBFCs. This will not only boost NBFCs but also increase capital expenditure, which will boost the economy.
Urban Cooperative Banks: Licensing of new urban cooperative banks (UCBs), which has been stalled since 2004, may resume. The RBI will release a discussion paper reflecting reforms in the sector and growing stakeholder demand.
Also announced
Other ongoing reforms include implementing the Expected Credit Loss (ECL) framework and revised Basel III norms from April 1, 2027, and rationalizing key provisions related to external commercial borrowing under FEMA regulations. The introduction of risk-based deposit insurance premiums has also been announced to encourage stronger risk management. Governor Malhotra stated that these measures are aimed at expanding credit, supporting priority sectors, and strengthening broader economic growth.
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