RBI Unveils Growth-Focused Reforms to Boost Credit, Ease Business, and Support INR Internationalisation

Sachin Sawrikar Managing Partner Artha Bharat Investment Managers IFSC LLP

“While there was no strong case for an immediate rate cut, the more important focus was on how the RBI would support credit delivery and improve the ease of doing business, particularly through adjustments to risk weights and regulatory frameworks. In that context, the RBI has announced a series of thoughtful and forward-looking measures. Expanding bank financing to include M&A activity, increasing limits on capital market exposures, and rationalising the large exposure framework are all constructive steps toward more efficient capital allocation. The reduction of risk weights for infrastructure lending by NBFCs is a clear positive, potentially lowering the cost of capital for critical sectors.

On the external front, increasing the timeline for realisation of export proceeds in INR from one month to three months provides flexibility to exporters and supports INR invoicing. The planned rationalisation of FEMA and ECB regulations, along with measures to simplify non-resident business frameworks, reflects a sustained push to align with global best practices. Importantly, steps to internationalise the INR, including allowing neighbouring countries to take credit in INR, are timely and strategic.

Overall, the direction is pragmatic, growth-supportive, and clearly aimed at improving financial sector efficiency and business ease.”