2 October 2025, 10:51 India: RBI Eases Path for Bank Loans, Capital Market Entry.
The Reserve Bank of India on Wednesday rolled out a series of measures to boost bank lending and deepen banks’ role in capital markets. The central bank allowed domestic banks to fund acquisitions by Indian corporates - a space previously dominated by foreign lenders - and raised the cap on loans against equity shares from INR 2 million to INR 20 million. Bank financing for IPOs will also rise to INR 2.5 million per individual. Policymakers also proposed withdrawing a 2016 framework limiting loans to large corporations, lowered risk weights for infrastructure loans, and deferred implementation of expected credit loss rules to April 1, 2027, with full compliance by March 31, 2031. Basel III norms will also take effect from April 2027, and draft rules to ease capital requirements for small enterprises and home loans will be issued soon.
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