RBI Boosts Credit Access with New Lending Limits

The Reserve Bank of India announced a key policy change on Wednesday, proposing substantial increases in the lending limits for banks concerning shares and IPO financing. This financial policy shift aims to bolster credit availability for investors.

Previously, banks could lend up to Rs 20 lakh against shares and Rs 10 lakh for IPO financing. The revisions will now enable lending up to Rs 1 crore against shares and Rs 25 lakh for IPO investments, enhancing the scope of financial support to the capital markets.

RBI Governor Sanjay Malhotra also introduced an enabling framework to allow Indian banks to finance corporate acquisitions. The adjustments are part of a strategy to rationalize guidelines and expand lending opportunities in India's evolving capital market landscape. The full draft guidelines are expected soon.

(With inputs from agencies.)