**RBI Raises IPO Financing Limit to ₹25 Lakh Per Investor**
*By Akash Pandey | Oct 01, 2025, 05:12 PM*
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The Reserve Bank of India (RBI) has announced a significant increase in the financing limit for Initial Public Offerings (IPOs), raising it from ₹10 lakh to ₹25 lakh per investor. This move aims to boost credit flow across the Indian economy and support investor participation in equity markets.
RBI Governor Sanjay Malhotra unveiled this decision following a three-day meeting of the monetary policy committee, signaling the central bank’s commitment to enhancing credit accessibility.
### Regulatory Changes to Boost Lending
In addition to raising the IPO financing limit, the RBI has proposed the removal of the regulatory cap on lending against listed debt securities. This adjustment will provide banks with greater flexibility in extending credit secured by such instruments.
Furthermore, the limit for loans against shares has been increased significantly from ₹20 lakh to ₹1 crore per individual. These changes are designed to strengthen credit flow and encourage investment activities in the financial markets.
### Expansion of Banking Lending Scope
The RBI has also introduced a major policy shift by allowing Indian banks to finance mergers and acquisitions (M&A) carried out by domestic companies. This new lending scope is expected to bolster the banking sector’s role in deal financing, potentially diverting such activities from private credit channels to formal banking institutions.
### Positive Industry Response and Policy Alignment
Industry experts have welcomed the RBI’s recent measures. Chanchal Agarwal, CIO at Equirus Family Office, commented that these steps will help banks reclaim credit flows previously moving towards structured credit players. He highlighted the policy’s focus on broadening credit intermediation, especially through facilitating the expansion of Urban Cooperative Banks.
These initiatives align with the government’s broader **Viksit Bharat** agenda aimed at improving credit access and deepening India’s financial ecosystem.
### Updated Economic Projections
Maintaining the repo rate unchanged as anticipated, the RBI revised its GDP growth forecast for the current fiscal year upwards from 6.5% to 6.8%. Simultaneously, the consumer price inflation (CPI) forecast was lowered from 3.1% to 2.6%.
Murthy Nagarajan, Head of Fixed Income at Tata Asset Management, noted that the revised economic outlook could create room for potential rate cuts in upcoming monetary policy meetings.
### Steps Toward Indian Rupee Internationalization
The RBI is also taking steps to enhance the global use of the Indian rupee (INR). Authorized Indian banks will now be permitted to extend rupee-denominated loans to non-resident entities in Bhutan, Nepal, and Sri Lanka for cross-border trade transactions.
Governor Malhotra emphasized that these measures reflect ongoing progress in making the INR a more internationally accepted currency, supporting India’s growing role in regional trade.
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*The RBI’s recent policy decisions mark a strategic push to improve credit accessibility, expand banking activities, and strengthen the Indian rupee’s global footprint, contributing to the nation’s robust economic growth trajectory.*
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