In major reforms, RBI expands credit for companies; limits on loansagainst shares hiked 5x to Rs 1cr

MUMBAI: Reserve Bank of India unveiled on Wednesday its most comprehensive reforms in over a decade, aimed at countering US-driven headwinds and expanding credit to companies, while deepening capital market activity. Banks can now finance mergers and acquisitions, and IPOs more freely, while limits on loans against shares and listed debt securities have been raised. Central to the measures is the easing of borrowing rules for companies with bank loans above Rs 10,000 crore, removing the previous cap and extra capital requirements that made lending costly. Credit concentration will continue to be monitored at individual banks, with system-wide safeguards deployed only if necessary, allowing for cheaper, more accessible corporate credit, improved bank capital efficiency, and broader p