RBI Unveils Six Key Measures to Strengthen India’s Banking, Fintech, and Payments Ecosystem

Let’s break down what these new developments mean for businesses, consumers, and the broader financial ecosystem.

1. A New Route for Securitisation of Stressed Assets

To help banks and financial institutions better manage stressed loans, RBI has proposed a market-driven securitisation mechanism. Unlike the traditional route through Asset Reconstruction Companies (ARCs), this new approach allows banks to package and sell stressed assets directly to investors in the market.

This move could improve liquidity and free up capital, enabling banks to redirect funds toward productive lending. It also provides greater flexibility in dealing with non-performing assets, which has long been a challenge for the banking sector.

2. Expanding the Co-Lending Framework

RBI is also enhancing its existing co-lending model, which allows banks and non-banking financial companies (NBFCs)—including fintech lenders—to work together in offering credit.

By deepening these partnerships, the RBI aims to improve credit access in underserved markets, especially for micro, small, and medium enterprises (MSMEs) and rural borrowers. With this move, borrowers could see better loan terms, faster disbursals, and more innovative financing options.

3. Harmonising Rules for Gold Loans and Non-Fund Facilities

Gold-backed loans are widely used across India, especially in semi-urban and rural areas. RBI now plans to standardize regulations governing these loans and other non-fund-based instruments like bank guarantees and letters of credit.

This will ensure uniform risk assessment and documentation, helping financial institutions maintain consistent practices. For borrowers, it means more clarity and fairness in how such facilities are offered and managed.

4. Draft Guidelines Open for Public Feedback

An important aspect of these announcements is the RBI’s commitment to transparency and inclusivity. All the proposed measures will be released in draft form for public consultation, inviting feedback from banks, fintechs, experts, and citizens.

This approach reflects RBI’s intent to build collaborative regulations that support both innovation and risk management in a fast-evolving financial ecosystem.

5. Revisiting UPI and P2P Transaction Limits

With the explosive growth of UPI (Unified Payments Interface) and peer-to-peer (P2P) payments in India, RBI has signaled that it may reassess transaction caps to ensure the system remains both accessible and secure.

India’s digital payment market has grown rapidly—UPI processed over 14 billion transactions in a single month in 2024. Revisiting these limits could support larger transactions while introducing safeguards against misuse and fraud.

6. Boosting Innovation Through Regulatory Sandboxes

Finally, RBI is expanding its regulatory sandbox framework, which allows fintech companies to test new products and services in a controlled environment. The central bank plans to encourage experiments in areas like:

• Offline-capable digital currency

• Direct benefit transfer (DBT) improvements

• Cross-border payment solutions

This initiative aligns with the RBI’s broader mission of encouraging responsible innovation, particularly in areas that can advance financial inclusion and improve service delivery.

What This Means for You

Whether you’re a consumer, fintech entrepreneur, or business owner, these six measures reflect a forward-looking strategy to make India’s financial system more resilient, inclusive, and technology-driven. From better lending options to smarter digital payments, these initiatives are expected to bring tangible benefits across the board.

As these proposals move through public consultation and into implementation, TheFinRate.com will continue to track updates, insights, and industry reactions.