RBI Governor rules out changes to new lending norms for brokers
Reserve Bank Governor Sanjay Malhotra stated the central bank will not revise upcoming lending restrictions for brokers. These rules take effect from April 1.
Insights:
The Reserve Bank of India confirmed on February 23, 2026, that it will not revisit recently announced regulations that increase collateral requirements for bank guarantees to brokerage firms and prohibit banks from lending to brokers for proprietary trading. These rules, which were finalised after a comprehensive consultation process, are scheduled to take effect on April 1. The central bank’s decision to maintain the current trajectory comes despite formal requests for a review from industry participants.
