RBI Policy
RBI to review capital market exposure guidelines for banks
This story was originally published at 12:29 IST on 1 October 2025
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MUMBAI – The Reserve Bank of India proposed a review of capital market exposure guidelines for banks, Governor Sanjay Malhotra said while detailing the outcome of the Monetary Policy Committee meeting on Wednesday. "There has been significant growth and development in the capital market structure, along with strengthening of the banking system in recent years," a statement from the RBI said.
The review proposes to provide an enabling framework for banks to finance acquisitions by Indian corporates. The review also proposes to enhance the limit for lending by banks against shares, units of real estate investment trust, and units of infrastructure investment trust while removing the regulatory ceiling altogether on lending against listed debt securities. A more principle-based framework for lending to capital market intermediaries is also proposed, the RBI said.
The RBI's Monetary Policy Committee in a unanimous decision Wednesday left the policy repo rate unchanged at 5.50%, the central bank's Governor Sanjay Malhotra said. The committee also retained its 'neutral' policy stance. Malhotra noted that the decision was a fallout of inflation outlook turning out to be more benign than previously projected. End
Reported by Kabir Sharma
Edited by Tanima Banerjee
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