Capital market exposures (CME) of the regulated entities (REs) which include, inter alia, lending against securities to individuals and lending to capital market intermediaries, have been subject to prudential regulations relating to sectoral exposure limits, single borrower limits, margin requirements, etc. Further, bank finance for acquisition of shares has been generally disallowed.

There has been significant growth and development in the capital market structure, along with strengthening of the banking system in recent years. With the objective of rationalising the extant guidelines and broadening the scope for capital market lending by banks, it is proposed to inter alia:

• enhance the limit for lending by banks against shares, units of REITs, units of InvITs while removing the regulatory ceiling altogether on lending against listed debt securities; and

• put in place a more principle-based framework for lending to capital market intermediaries.

The draft Reserve Bank of India (Small Finance Banks - Capital Market Exposure) Directions, 2025 have been issued for public comments.

Additional comments or any attachments may also be submitted by email at feedbackcrg@rbi.org.in.

Last date for submission of comments is November 21, 2025.

Capital market exposures (CME) of the regulated entities (REs) which include, inter alia, lending against securities to individuals and lending to capital market intermediaries, have been subject to prudential regulations relating to sectoral exposure limits, single borrower limits, margin requirements, etc. Further, bank finance for acquisition of shares has been generally disallowed.

There has been significant growth and development in the capital market structure, along with strengthening of the banking system in recent years. With the objective of rationalising the extant guidelines and broadening the scope for capital market lending by banks, it is proposed to inter alia:

• provide an enabling framework for banks to finance acquisitions by Indian corporates;

• enhance the limit for lending by banks against shares, units of REITs, units of InvITs while removing the regulatory ceiling altogether on lending against listed debt securities; and

• put in place a more principle-based framework for lending to capital market intermediaries.

The draft Reserve Bank of India (Commercial Banks - Capital Market Exposure) Directions, 2025 have been issued for public comments.

Additional comments or any attachments may also be submitted by email at feedbackcrg@rbi.org.in.

Last date for submission of comments is November 21, 2025.

As announced in the Statement on Developmental and Regulatory Policies dated October 01, 2025, it has been decided to rationalize regulations pertaining to External Commercial Borrowing (ECB) included in the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 issued under FEMA, 1999. Salient features of proposed regulations are as under:

1. The borrowing limits are proposed to be linked to a borrower’s financial strength and ECB are proposed to be raised at market determined interest rates.

2. The end-use restrictions and Minimum Average Maturity requirements are proposed to be simplified.  

3. The borrower and lender base eligible for ECB transactions is being expanded to enhance opportunities of credit flow for productive commercial use.

4. Reporting requirements are being simplified to ease compliance obligations.

The draft amendment to the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 pertaining to the ECB framework is available on the RBI website for public response.

Comments/ feedback on the draft regulations may be submitted through the link given below. Alternatively, it may also be forwarded via email to ecbframework@rbi.org.in by October 24, 2025, with the subject line “Feedback on draft ECB framework”.

As announced in the Statement on Developmental and Regulatory Policies dated October 01, 2025, the Reserve Bank had issued the Foreign Exchange Management (Establishment in India of a Branch Office or a Liaison Office or a Project Office or any other place of business) Regulations, 2016, vide Notification No. FEMA 22(R)/2016-RB. dated March 31, 2016.

2. On a review, it has been decided to amend the extant regulations along the following lines:

1. The eligibility criteria for establishment of a place of business in India, are proposed to be relaxed.

2. The draft proposals offer greater operational freedom by shifting from prescriptive to a principle-based framework, which is expected to result in   greater operational freedom.

3. The process for closure of non-compliant and inactive branch/office, are proposed to be simplified.

3. Comments/feedback on the draft regulations may be submitted through the link given below. Alternatively, it may also be forwarded via email to reviewoffema22rfeedback@rbi.org.in by October 24, 2025, with the subject line “Feedback on draft regulations on Branch or office”.

With the objective of enforcing credit discipline among borrowers as well as to facilitate better monitoring by lenders, certain restrictions were placed on the operation of Current Accounts (CA), Cash Credit Accounts (CC) and Overdraft Accounts (OD) (“Transaction Accounts”) offered by banks vide various circulars issued from time to time. Based on the experience gained and feedback received, these instructions have been reviewed and it is proposed to ease some of the stipulations and provide greater flexibility to the banks in this regard, particularly in case of borrowers being entities regulated by a financial sector regulator. Accordingly, the draft “Reserve Bank of India (Regional Rural Banks – Transaction Accounts) Directions, 2025” has been issued for public comments.

Additional comments or any attachments may also be submitted by email at cgmicdor@rbi.org.in.

Last date for submission of comments is October 24, 2025.

With the objective of enforcing credit discipline among borrowers as well as to facilitate better monitoring by lenders, certain restrictions were placed on the operation of Current Accounts (CA), Cash Credit Accounts (CC) and Overdraft Accounts (OD) (“Transaction Accounts”) offered by banks vide various circulars issued from time to time. Based on the experience gained and feedback received, these instructions have been reviewed and it is proposed to ease some of the stipulations and provide greater flexibility to the banks in this regard, particularly in case of borrowers being entities regulated by a financial sector regulator. Accordingly, the draft “Reserve Bank of India (Small Finance Banks – Transaction Accounts) Directions, 2025” has been issued for public comments.

Additional comments or any attachments may also be submitted by email at cgmicdor@rbi.org.in.

Last date for submission of comments is October 24, 2025.