In order to facilitate investor access to credit, Governor Sanjay Malhotra said that the regulatory cap on lending against listed debt instruments would be lifted and that the repo rate would stay at 5.5%.
On Wednesday, October 1, 2025, the Reserve Bank of India (RBI) increased the borrowing ceiling against shares from the current Rs 20 lakh to Rs 1 crore per person. Following today’s meeting of the Monetary Policy Committee, RBI Governor Sanjay Malhotra delivered the statement. Investors see the action as a significant step to increase lending availability.
The governor also reaffirmed that the RBI would continue to lend to commercial banks at the 5.5% repo rate.
According to Malhotra, the proposed reforms would eliminate the regulatory cap on lending against listed debt instruments and increase bank lending restrictions against shares from Rs 20 lakh to Rs 1 crore and for IPO funding from Rs 10 lakh to Rs 25 lakh per individual.
You may obtain emergency money by pledging your assets if you possess shares or mutual funds but would prefer not to redeem them. Pledging enables you to borrow money from a lender or financial institution by using securities as collateral, such as stocks, mutual funds, or other assets.
These loans provide quick access to money without requiring you to liquidate your assets. When compared to credit cards or personal loans, they often have cheaper interest rates. The application procedure is simple, completely online, and involves very little paper work. With only a few clicks and your investment app, you may get such a loan.
Individuals may now borrow up to 50% of the value of pledged shares, with a Rs 20 lakh maximum. The most recent change has upped the upper limit to Rs 1 crore.
In addition, the RBI increased the funding cap for initial public offerings (IPOs) from Rs 10 lakh to Rs 25 lakh per individual. IPO financing enables investors to take part in new share offerings without having to provide the whole cash up front, since banks finance the application and then obtain repayment via the issued shares.
Additionally, the regulatory authority said that it would no longer lend against listed debt instruments. Sovereign gold bonds (SGBs), corporate bonds, non-convertible debentures (NCDs), green bonds, and other securities fall under this category.
According to market analysts, the action will increase liquidity, foster wider use of stocks as collateral for borrowing, and enhance investor engagement.