Story perspectives
RBI Proposes New Guidelines for Bank Lending Regulations
10/25/2025
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Story summary
- Reserve Bank of India (RBI) proposed guidelines on October 24, 2025 to regulate banks' lending against stocks and acquisitions.
- Banks' acquisition-finance exposure is capped at 10% of tier-1 capital, with a maximum 70% financing per deal.
- Eligible companies must be listed, profitable for three years, and have satisfactory net worth.
- The RBI caps capital-market exposure at 40% of tier-1 capital.
- Feedback on the draft is due by November 21, 2025.
