Archive · 5 Dec 2025
RBI Repeals 2016 Lending Guidelines for Large Borrowers
The Reserve Bank of India (RBI) has decided to remove old rules from 2016 that were meant to make big companies borrow money from the market instead of banks.
Some people were worried this might hurt the market for corporate bonds, but the RBI thinks the market has grown enough on its own.
The RBI believes that letting the market decide where companies get their money is better than having strict rules.
This change might help banks lend more money to big companies.
The old rules applied to companies that borrowed more than ₹10,000 crore from banks.
The RBI also said that the banking system is now stronger and can handle any risks better than before.
RBI repealed 2016 guidelines that pushed large borrowers to use market-based funding.
The move aims to promote a market-driven framework for funding large borrowers.
Some stakeholders expressed concerns about potential impacts on corporate bond market volumes.
RBI believes the corporate bond market has grown significantly due to various factors, including regulatory reforms.
Banks may have the potential to lend an additional ₹3-4.5 trillion by FY25 due to the repeal.
- Who
- Reserve Bank of India (RBI)
- What
- Repealed 2016 guidelines on lending to large borrowers
- When
- Thursday (unspecified date)
- Where
- India
- Why
- To promote a market-driven framework for funding large borrowers
- Guidelines Repealed
- 2016 framework on Enhancing Credit Supply for Large Borrowers through Market Mechanism
- Initial Proposal Date
- 1 October 2023
- Effective Date
- Thursday (unspecified date)
- Corporate Bond Market Growth
- Significant increase over the years
- Potential Bank Lending Increase
- ₹3-4.5 trillion by FY25
- Threshold for Large Borrowers
- ₹10,000 crore credit limit from banking system
- RBI's Stance
- Market-driven framework is more optimal than regulatory fiat
