The Reserve Bank of India (RBI) has announced major amendments to banking regulations aimed at ensuring faster flow of policy rates, easing gold and silver-backed lending rules, and relaxing regulations related to large credit exposures.

The central bank on September 29 released seven circulars/directions “applicable to banks and other regulated entities”. Of these seven directions, three will come into effect immediately. While public comments are solicited on the other four, the RBI said.

Directions which come into force from October 1, 2025

1. Interest rates and floating-rate loan improvements

Under the new guidelines, banks are allowed to reduce the spread on floating-rate loans, even if the three-year lock-in period has not been met. This is intended to quickly pass on the bene

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