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RBI Banking Reforms
October 10 , 2025
14 hrs 0 min
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- The Reserve Bank of India (RBI) announced four major reforms on 1 October 2025 to align Indian banking with global standards.
- RBI will introduce risk-based deposit insurance premiums.
- Under this, the Banks with better risk profiles pay lower rates to the Deposit Insurance and Credit Guarantee Corporation (DICGC).
- An Expected Credit Loss (ECL) provisioning model will apply to commercial banks and financial institutions from 1 April 2027, with a glide path until 31 March 2031.
- Revised Basel III capital norms will reduce risk weights for MSMEs and home loans, strengthening credit flow and sectoral resilience.
- RBI will implement new investment and business guidelines, removing restrictions on business overlap with group entities and giving boards more decision-making power.
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