Reserve Bank of India Governor Sanjay Malhotra, as part of the recent MPC statement, announced 22 important measures that he said would make banking better, easier business operations, and strengthen India's economy.
"I shall now announce a package of twenty-two additional measures aimed at strengthening the resilience and competitiveness of the banking sector, improving the flow of credit, promoting ease of doing business, simplifying foreign exchange management, enhancing consumer satisfaction, and internationalisation of the Indian Rupee," said the apex bank chief.
RBI measures for banks
1. Starting April 2027, major banks will follow stricter international standards for managing money and calculating risks. Banks get time until March 2031 to adjust to these new rules smoothly, so there's no sudden disruption to banking services.
2. Lower capital requirements for home loans: Banks will need to keep less money aside when giving home loans and small business loans, making it easier and cheaper for you to get these loans.
3. Banks can now choose a business focus: Bank management can now decide what services different parts of their group should offer, removing government restrictions on their business strategies.
4. Banks that manage risks well will pay lower insurance premiums, encouraging all banks to be more careful with your money.
Easier Loans
5. Indian banks can now help Indian companies buy other businesses, providing more funding options for corporate growth.
6. You can now borrow up to Rs 1 crore against your shares from the earlier Rs 20 lakh. The IPO financing limit was also increased to Rs 25 lakh per person from Rs 10 lakh. The limit on borrowing against listed bonds was also lifted.
7. Banks can now lend more freely to large companies (with borrowing above Rs 10,000 crore), removing earlier restrictions.
8. Non-banking finance companies (NBFCs) will find it cheaper to fund good infrastructure projects, leading to better roads, bridges, and facilities.
9. After 20 years, RBI said it will consider allowing new urban cooperative banks to start.
Ease of doing business
10. About 9,000 different banking rules will be consolidated into simpler, topic-wise guidelines, making it easier for businesses to understand regulations.
11. Businesses can more easily open and maintain current accounts and overdraft facilities, especially if they're regulated by financial authorities.
12. Indian exporters in IFSC can now keep foreign currency for 3 months instead of 1 month.
13. Businesses doing merchanting trade (buying and selling without goods entering India) get 6 months instead of 4 months to complete foreign exchange transactions.
14. Simplified process for matching export and import records in government portals, reducing paperwork for businesses.
Simpler forex rules
15. Companies will find it easier to borrow money from abroad with simplified rules about who can borrow, how much, and for what purposes.
16. Foreign companies will face simpler rules when setting up business operations in India.
New RBI rules to help you
17. If you have a basic savings account (with zero minimum balance), you'll now get free mobile and internet banking services.
18. Banks and financial companies will have stronger internal systems to solve your complaints faster and more effectively.
19. Improved RBI Ombudsman: The RBI's complaint resolution system is being improved, and rural cooperative banks are now included, the Governor said.
Strengthening the Rupee
20. Indian banks can now lend INR to people and businesses in Bhutan, Nepal, and Sri Lanka for cross-border trade, promoting the use of our currency.
21. RBI will provide transparent exchange rates for currencies of India's major trading partners, making rupee-based international trade easier.
22. Special Rupee accounts used for international trade can now invest in corporate bonds and commercial papers, making the rupee more useful globally.
For the everyday Indian, some of these measures mean easier and potentially cheaper home loans and business loans, better banking services, and faster complaint resolution.