Reserve Bank of India (RBI) Governor Sanjay Malhotra (file photo) | Photo credit: REUTERS/FRANCIS MASCARENHAS
In rules released earlier this month, RBI has increased collateral requirements for bank guarantees to brokers and banned proprietary trading loans by them. The changes will come into effect from April 1.
Stocks of brokerage firms fell last week on concerns that the rules would impact brokers’ profit margins and reduce trading volumes. Brokers have asked for a revision of the rules in a letter to the market regulator.
The rules were finalized after consultations, RBI Governor Sanjay Malhotra said at a press conference after the bank’s board meeting.
“There is no change that we are considering,” he said.
INFLATION-FOCUSED ASSESSMENT
Malhotra said the central bank has sent its recommendations on India’s inflation targeting framework to the government ahead of an upcoming review.
He did not make the recommendations public.
India mandates that the central bank target retail inflation of 4%, with a comfort margin of 2% to 6%. The target is due to be revised by the end of March.
India recently revised its retail inflation figures, reducing the share of food in the basket of goods used to measure prices.
The changes in themselves will not impact the central bank’s view on the appropriate inflation target, Malhotra said.
Published on February 23, 2026
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