{"id":16981,"date":"2025-10-02T09:34:18","date_gmt":"2025-10-02T09:34:18","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/10\/02\/rbis-measures-for-banks-to-strengthen-balance-sheet-boost-credit-flow-bankers-banking-and-finance-news\/"},"modified":"2025-10-02T09:34:18","modified_gmt":"2025-10-02T09:34:18","slug":"rbis-measures-for-banks-to-strengthen-balance-sheet-boost-credit-flow-bankers-banking-and-finance-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/10\/02\/rbis-measures-for-banks-to-strengthen-balance-sheet-boost-credit-flow-bankers-banking-and-finance-news\/","title":{"rendered":"RBI’s Measures For Banks To Strengthen Balance Sheet, Boost Credit Flow: Bankers | Banking and Finance News"},"content":{"rendered":"


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The Reserve Bank of India (RBI) has announced a series of measures aimed at strengthening banks’ balance sheets and boosting credit flow.<\/h2>\n
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RBI’s Banking Sector Announcements.<\/p>\n<\/figure>\n

The Reserve Bank of India (RBI) has announced a series of measures aimed at strengthening banks\u2019 balance sheets and boosting credit flow. Bankers welcomed the announcements, saying they would support growth and improve the financial ecosystem.<\/p>\n

Indian Overseas Bank MD & CEO Ajay Kumar Srivastava said the focus on expanding the bouquet of services for basic bank savings deposit accounts through mobile and internet services will have a positive impact on consumers.<\/p>\n

After the RBI announcement on Wednesday, no-frills account holders can now use the digital banking facility free of cost.<\/p>\n

ESAF Small Finance Bank MD and CEO K Paul Thomas said with inflation remaining at a historic low, the space to support growth remains wide, even as inflation trends stay a key monitorable. \u201cThe overall message is clear \u2014 future policy will be data-driven, and the outlook remains supportive of growth despite global uncertainties\u2026these measures are expected to further boost rural demand and investment activity, creating a favourable environment for sustainable growth,” he said.<\/p>\n

State Bank of India Chairman CS Setty said, \u201cThe policy statement was an authoritative one towards unveiling of market reforms and moving beyond the rate actions. The move towards a risk-based deposit insurance premium will facilitate significant improvement in the bottom line of sound banks”.<\/p>\n

The withdrawal of framework related to specified borrowers and allowing M&A financing by Indian banks are growth accretive and will foster incremental credit flow from banks, he added.<\/p>\n

Extension of timelines for repatriation from foreign currency accounts of Indian exporters in IFSC and forex outlay for Merchanting Trade Transactions, besides simplification of reconciliation processes in EDPMS\/IDPMS portals, are welcome steps, as they will further enhance ease of doing business for the export sector, he noted.<\/p>\n

Grant Thornton Bharat partner Vivek Iyer said, \u201cThe measures towards enhancing customer satisfaction and protection, improved use of the rupee across cross-border transactions will strengthen the larger financial ecosystem in terms of acceptability and improved currency outlook over the medium term. Meanwhile, the GST reforms are providing fiscal support to boost the economy, giving the RBI more flexibility, and reducing the need to rely solely on monetary easing to boost demand. \u201cBased on current trends, we expect the RBI to hold rates in the upcoming MPC meeting, with the possibility of a cut in the subsequent review.”<\/p>\n

The RBI\u2019s decision to maintain the repo rate at 5.5 per cent reinforces stability in the lending environment, Kotak Mahindra Bank Head-Housing Finance Business Manu Singh said.<\/p>\n

RBI\u2019s Measures Announced On October 1<\/strong><\/p>\n

Banking Sector Resilience<\/strong><\/p>\n