Economy News

RBI Banking Reforms

October 10 , 2025 14 hrs 0 min 42 0

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.