RBI Unveils 22 Measures to Boost Lending, Ease Capital Requirements
The Reserve Bank of India (RBI) has announced a series of measures to stimulate bank credit and ease capital requirements. Governor Shri Sanjay Malhotra revealed these 22 initiatives on October 1, 2025, aiming to boost lending in India's economy.
Among the key changes, the RBI will soon issue draft rules to lower risk weights for certain segments, thereby reducing capital requirements. This move is expected to encourage banks to lend more freely.
The limit for lending against equity shares has been significantly increased, from 2 million rupees to 20 million rupees. Additionally, the cap on bank financing for Initial Public Offerings (IPOs) has been raised to 2.5 million rupees per individual.
The central bank also proposed withdrawing a 2016 framework that previously restricted bank lending to large corporations. Furthermore, banks will now be allowed to fund acquisitions by Indian corporates, a sector previously dominated by foreign lenders and credit funds.
To align with international standards, the RBI has set April 1, 2027, as the effective date for implementing Basel 3 norms and expected credit loss rules. Risk weights for infrastructure loans by non-bank lenders have been lowered to increase credit flow in this crucial sector.
These 22 measures by the RBI are expected to significantly boost bank lending in India. The Nifty private bank index and banks and financials sectors in Mumbai have already responded positively, with increases of 1.97%, 1.3%, and 1.38% respectively. The full implementation of these changes by March 31, 2031, is set to reshape India's banking landscape and stimulate economic growth.
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