To improve the credit stream, the RBI has announced a large number of measures, including plans to offer a possible framework for banks to finance acquisitions by Indian companies and to improve the limit for loans by banks against shares.
In addition, the limit for lending by banks against units of Reit’s (real estate investments), units of Invits (Infrastructure Investment Trusts) will also be improved while the legal ceiling is completely removed over loans against the debt reported.
In addition, RBI will set up a more principles -based framework for loans on the intermediaries capital market.
The aforementioned measures are considered in an attempt to rationalize the existing guidelines and to broaden the scope for capital market loans by banks and other regulated entities.
These movements come in the background of reducing the flow of non-food bank credit to the commercial sector in FY25 and the credit flow of non-banking sources that go up.
The bank credit grew by 12.1 percent in 2024-25. Although it is slower than the growth rate of 16.3 percent in 2023-24, it is higher than the average growth rate of 10.3 percent registered in the period of ten years prior to 2024-25, according to the statement of the Governor.
In addition, while the flow of non-food bank credit during the financial year 2024-25 by around £ 3.4 Lakh Crore from £ 21.4 Lakh Crore was reduced to nearly £ 18 Lakh Crore, the current of non-bank sources is more than invented for this decrease.
“So, although the growth of the bank credit delayed last year, the total flow of financial resources to the commercial sector from £ 33.9 Lakh Crore in 2023-24 to £ 34.8 Lakh Crore in 2024-25 in 2023-24 rose in 2024-25. This trend will also take place in the current financial year,” said, “said”
The Governor emphasized that in order to expand the scope of the capital market loans by banks, RBI is planning to offer a possible framework for Indian banks to finance acquisitions by Indian companies.
The RBI also proposes (a) to remove the legal ceiling for lending against stated debt and (b) the limits for loans by improving banks against shares from £ 20 lakh to £ 1 crore and for IPO financing from £ 10 lakh to £ 25 lakh per person.
Furthermore, the Central Bank proposes to include the framework introduced in 2016 that the lending by banks was not insured to specified borrowers (with credit limit of the banking system of £ 10,000 crore and higher).
The Governor of Malhotra noted that, although the large exposure framework has since been set for banks, the credit concentration risk at a certain entity or group at an individual bank level, concentration risk at the level of the banking system, when and if necessary, will be managed via specific macroprudential tools.
Furthermore, RBI is planning to reduce the costs of infrastructure financing by NBFCs, to reduce the risk weights that apply to loans by NBFCs to operational, high -quality infrastructure projects.
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Published on October 1, 2025
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