The Reserve Bank of India announced a set of regulatory and market measures aimed at easing compliance, improving credit access and enhancing financial market depth, alongside its policy decision.
The central bank said it will rationalise regulatory instructions to enable bank boards to focus more on strategic issues, while consolidating supervisory guidelines into a streamlined framework, Governor Sanjay Malhotra said on Wednesday. The move follows a broader effort to simplify regulatory processes.
To support small businesses, the RBI proposed easing onboarding requirements for micro, small and medium enterprises on trade platforms, aimed at improving access to financing and reducing compliance burden.
The announcement came after the RBI Governor announced the monetary policy decision, where all the six members voted unanimously to keep the repo rate unchanged at 5.25%.
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On capital adequacy, the central bank said it will remove certain conditions related to inclusion of quarterly profits in capital calculations and review requirements linked to investment fluctuation reserves, reflecting changes in prudential norms over time.
The RBI also expanded participation in the term money market by allowing additional non-bank entities and increasing borrowing limits for primary dealers. These steps are aimed at improving liquidity and market depth.
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The measures come at a time when financial conditions have tightened due to global volatility, with elevated funding costs and pressure on liquidity. The RBI said it will remain proactive in managing liquidity to support productive credit demand and ensure stability.
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Catch all the live updates on RBI MPC decision here. Track all the developments on stock markets here.
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