A key positive development is the liberalisation of capital market lending norms.
FinTech BizNews Service
Mumbai, October 1, 2025: The Monetary Policy Committee (MPC) held its 57th meeting from September 29 to October 1, 2025, 2025 under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya attended the meeting.
Chanchal Agarwal, CIO, Equirus Family Office, shares important views on the Capital Market Lending Push:
"The RBI Governor delivered a dovish pause, broadly in line with market expectations, signalling room for further accommodation should the headline inflation numbers be higher. A key positive development is the liberalisation of capital market lending norms. RBI raised prudential limits on loans against shares, financing against listed debt, IPO funding, and also allowed banks greater flexibility to extend credit for acquisition financing. This move is significant, as it enables banks to recapture flows that had increasingly shifted to structured credit players.In addition, policy thrust remained on widening credit intermediation – notably through measures permitting the expansion of Urban Cooperative Banks – aligning with the broader Viksit Bharat agenda of improving credit access and deepening the financial system.
CPI continues to moderate. Despite the stance, markets reacted cautiously – the 10-year benchmark yield hardened to ~6.6% post-policy, indicating that investors see limited scope for an extended easing cycle. Current projections suggest at most one additional cut, with the terminal repo rate likely to settle around 5.25%. From here, policy calibration will hinge on inflation anchoring and the trajectory of global monetary conditions."
