10 Reforms By RBI That Could Change How Everyone Borrows, Lends, And Trades: Especially If You’re In Debt?
Major Announcements Revealed Ahead of Diwali Festive Season 2025
The Reserve Bank of India (RBI) has rolled out a set of impactful financial transformations intended at enhancing domestic credit and fast-tracking the internationalisation of the Indian rupee. The declarations came subsequent to the Monetary Policy Committee (MPC) meeting held on October 1, 2025, are much anticipated to reorganize the lending landscape, develop capital markets, and improve India’s position in international trade.
These policy changes come before the festive season, a period when there is huge demand in the market, and are associated with much wider economic goals of cultivating market effectiveness and reducing need on the US dollar in international transactions.
Fivefold hike from Rs 20 lakh to Rs 1 crore
Fivefold hike from Rs 20 lakh to Rs 1 crore in the loan against shares, increasing liquidity for individuals along with businesses.
The Lending restrictions
The were Lending restrictions on listed debt securities, those limits have been removed.
Banks are now permitted to fund IPOs
Banks are now permitted to fund IPOs, mergers and acquisitions, thus, marking a significant shift in policy.
Lending caps have been withdrawn
Lending caps have been withdrawn for large corporate borrowers, earlier it was restricted under a 2016 framework.
Simplification of regulatory pressure
Simplification of regulatory pressure on banks and NBFCs by delay of expected Credit loss norms and Basel III capital requirements to April 2027.
Foreign entities can now invest
In order to expand investment opportunities across regions, foreign entities with vostro accounts can now invest in corporate bonds and commercial paper.
Indian banks can now offer rupee loans
Indian banks can now offer rupee loans to the neighbouring countries including Nepal, Bhutan, and Sri Lanka.
Introducing reference exchange rates
Enabling direct settlements of rupees in cross-border trade by Introducing reference exchange rates for the Indonesian rupiah and UAE dirham.
Less dependence on the US dollar
Aimed at less dependence on the US dollar in international transactions by enhancing the use of the Indian rupee.
Restructuring of lending landscape
Projected restructuring of lending landscape, deepen capital markets, and improving India's global trade position.
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