RBI's tighter capital market norms kick in from today; Ashvin Parekh on why the timing matters

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New Reserve Bank of India regulations, now effective from July 1, aim to bolster financial stability by limiting bank exposure to real estate and securities. These rules, following a deadline extension, restrict the use of third-party collateral and impose explicit caps on lending. Experts suggest the delay allowed for recalibration, ensuring the norms align with market dynamics and prevent excessive leverage during potentially optimistic periods.