UPI to remain free, says RBI:Loan limits on IPOs and shares increased to ₹25 lakh and ₹1 crore, large businesses to get more credit

The Reserve Bank of India (RBI) announced several key measures on October 1, aimed at making bank loans more accessible and affordable for both businesses and individuals. The RBI also confirmed that UPI transactions will continue to remain free of charges. RBI Governor Sanjay Malhotra shared the decisions following the Monetary Policy Committee (MPC) meeting. Major Decisions from RBI’s MPC 1. Acquisition Loans Made Easier for Companies Banks can now provide loans to Indian companies for acquisitions, following a request by the State Bank of India (SBI). The RBI will create a framework to simplify lending, helping companies raise funds more efficiently to acquire other businesses. 2. Higher Loan Limits on Shares and IPOs These changes particularly benefit high-net-worth individuals (HNIs), allowing them to invest more in IPOs. The new limits came into effect from October 1. 3. Cheaper Loans for Infrastructure Projects RBI has reduced the risk weight on loans extended to NBFCs for high-quality infrastructure projects. This move is expected to make funding for such projects easier and more affordable. 4. Relief for Large Borrowers
In 2016, the RBI had introduced a rule making it difficult for banks to lend to large borrowers with exposures exceeding ₹10,000 crore. This rule has now been removed, making it easier for large businesses to access loans and increasing overall credit availability in the system. 5. Extra Time for Banks to Implement New Rules RBI Governor Sanjay Malhotra announced that new banking regulations, including the Expected Credit Loss (ECL) framework and Basel III Capital framework, will come into effect in 2027. This provides banks with sufficient time to prepare for the changes. 6. UPI to Remain Free
The RBI clarified that no charges will be levied on UPI transactions at present. The government and RBI aim to promote digital payments, so UPI will continue to be free. While someone bears the cost of UPI infrastructure, there will be no changes for now. Impact of RBI’s Decisions Experts say these measures will encourage banks to increase lending, supporting corporate acquisitions, IPO participation, and infrastructure projects. With UPI remaining free, digital payments are expected to grow further, providing easier access to loans and financial services for both businesses and individuals. These steps are likely to give new momentum to India’s economy. Also Read:
Loans won’t get cheaper as inflation decreases: RBI keeps repo rate steady at 5.5%, while GDP growth forecast rises from 6.5% to 6.8%. The Reserve Bank of India (RBI) has not changed the repo rate for the second consecutive time. It has been kept unchanged at 5.5%. This means loans will not become expensive and your EMI will also not increase. Earlier, there was no change in this during the meeting held in August. Read the full news here.