RBI Boosts Capital Market Lending, Eases Infrastructure Financing
The Reserve Bank of India (RBI) has announced a series of measures to boost capital market lending and infrastructure financing. These moves reflect the country's evolving financial landscape.
The RBI plans to hike lending limits against shares, aiming to broaden capital market lending in India. This move is set to increase liquidity and encourage investment in the stock market today.
Additionally, the RBI seeks to ease risk weights on loans to Non-Banking Financial Companies (NBFCs) for infrastructure projects. This will make it cheaper for NBFCs to borrow, allowing them to fund more infrastructure projects.
In another significant development, the RBI has proposed a comprehensive framework enabling banks to finance corporate acquisitions. This framework, though not explicitly attributed to a specific proposer, aims to streamline the process and boost mergers and acquisitions activity.
The Reserve Bank of India's recent announcements signal a maturing financial system in India. By increasing lending limits, easing risk weights, and proposing a framework for corporate acquisitions, the RBI is fostering a more dynamic and robust financial environment.
