RBI just made it easier to cash in on stocks: Loan limit jumps 5x to Rs 1 crore
This five-fold increase, part of a 22-measure reform package, also includes a hike in IPO financing limit from ₹10 lakh to ₹25 lakh, and removal of regulatory caps on lending against listed debt securities.
- Oct 1, 2025,
- Updated Oct 1, 2025 11:09 AM IST
In a major step to improve credit flow and deepen capital market participation, the Reserve Bank of India (RBI) has raised the bank lending limit against shares from ₹20 lakh to ₹1 crore per borrower.
The move comes alongside a broader set of reforms aimed at easing access to finance and reviving private sector momentum.
This five-fold increase, part of a 22-measure reform package, also includes a hike in IPO financing limit from ₹10 lakh to ₹25 lakh, and removal of regulatory caps on lending against listed debt securities.
These changes are expected to unlock fresh credit lines for retail investors, high-net-worth individuals, and corporates seeking to leverage capital market assets.
RBI Governor Sanjay Malhotra said the measures would "expand the scope of capital market lending by banks" and support productive borrowing, while safeguarding financial stability.
The central bank is also working to lower the cost of infrastructure finance by reducing risk weights on NBFC lending to high-quality infrastructure projects. In a parallel move, the RBI is withdrawing a 2016 framework that disincentivised lending to large borrowers with ₹10,000 crore-plus bank exposures, further boosting credit availability.
Even with these pro-lending shifts, the RBI kept the repo rate unchanged at 5.5%, signalling that while monetary policy support remains in place, it is focusing on targeted credit delivery and structural reforms.
With the banking sector’s fundamentals strong—CRAR at 17.5% and GNPA at just 2.22%—the credit-enhancing measures are seen as timely, especially as the economy grapples with global trade tensions and volatile capital flows.
In a major step to improve credit flow and deepen capital market participation, the Reserve Bank of India (RBI) has raised the bank lending limit against shares from ₹20 lakh to ₹1 crore per borrower.
The move comes alongside a broader set of reforms aimed at easing access to finance and reviving private sector momentum.
This five-fold increase, part of a 22-measure reform package, also includes a hike in IPO financing limit from ₹10 lakh to ₹25 lakh, and removal of regulatory caps on lending against listed debt securities.
These changes are expected to unlock fresh credit lines for retail investors, high-net-worth individuals, and corporates seeking to leverage capital market assets.
RBI Governor Sanjay Malhotra said the measures would "expand the scope of capital market lending by banks" and support productive borrowing, while safeguarding financial stability.
The central bank is also working to lower the cost of infrastructure finance by reducing risk weights on NBFC lending to high-quality infrastructure projects. In a parallel move, the RBI is withdrawing a 2016 framework that disincentivised lending to large borrowers with ₹10,000 crore-plus bank exposures, further boosting credit availability.
Even with these pro-lending shifts, the RBI kept the repo rate unchanged at 5.5%, signalling that while monetary policy support remains in place, it is focusing on targeted credit delivery and structural reforms.
With the banking sector’s fundamentals strong—CRAR at 17.5% and GNPA at just 2.22%—the credit-enhancing measures are seen as timely, especially as the economy grapples with global trade tensions and volatile capital flows.