RBI Resets Indian Banking: Sweeping Reforms Unleash Growth in 2025

• RBI, under Governor Sanjay Malhotra, implemented its most significant regulatory overhaul in over a decade in 2025, introducing 80+ changes.
• The reforms aimed to free up bank balance sheets, revive credit growth, and align regulations with India's evolving economic ambitions.
• Key changes included recalibrating acquisition financing limits, unifying credit frameworks, and cleaning up the regulatory rulebook by scrapping obsolete circulars.
• The central bank also eased norms for NBFCs, microfinance institutions, and small finance banks, alongside delivering four rate cuts to boost credit.
• RBI's actions, including new bank licenses and openness to foreign capital, signal a shift from crisis-era to growth-era regulation for the next investment cycle.

Why It Matters: RBI's 2025 reforms fundamentally rewired Indian banking for growth, resilience, and the next investment cycle.