The Reserve Bank of India (RBI), led by Governor Sanjay Malhotra, announced key decisions and proposals during its October 2025 Monetary Policy Committee (MPC) meeting, aiming to balance economic growth, control inflation, and strengthen India’s financial ecosystem.
The MPC unanimously decided to maintain the repo rate at 5.5 percent while retaining a neutral stance. The RBI also revised its FY26 GDP growth projection upward to 6.8 percent from 6.5 percent and lowered the CPI inflation forecast to 2.6 percent from 3.1 percent.
Key Regulatory Proposals
Lending Against Securities
The RBI proposed reforms to streamline lending practices against securities. The cap on loans backed by listed debt securities will be removed, the lending limit against shares increased from ₹20 lakh to ₹1 crore per individual, and IPO financing limits raised from ₹10 lakh to ₹25 lakh per person.
Internationalisation of the Indian Rupee
The central bank is actively promoting the global use of the Indian Rupee. Banks in Bhutan, Nepal, and Sri Lanka will now be allowed to lend in Indian Rupees to Non-Resident Indians, signaling a major step toward INR adoption in regional trade and financial transactions.
Risk-Based Insurance Premiums
To strengthen risk management, the RBI proposed a framework for risk-based deposit insurance premiums. This approach links premiums to banks’ risk profiles, encouraging robust risk mitigation while lowering costs for higher-rated banks.
Enhancing Credit Flow
The RBI announced measures to improve credit availability for businesses and individuals, including relaxing regulatory ceilings on lending against listed debt securities. A discussion paper on licensing new urban cooperative banks (UCBs) will also be published soon to expand financial inclusion.
Governor Sanjay Malhotra highlighted that these initiatives reflect a balanced approach to sustainable economic growth while keeping inflation under control. By maintaining the repo rate, removing lending caps, and promoting the internationalisation of the Rupee, the RBI aims to enhance financial flexibility, inclusion, and the global presence of India’s currency.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
