RBI's tighter capital market norms kick in from today; Ashvin Parekh on why the timing matters
New Reserve Bank of India regulations, now effective from July 1, aim to bolster financial stability by limiting bank exposure to real estate and securities. These rules, following a deadline extension, restrict the use of third-party collateral and impose explicit caps on lending. Experts suggest the delay allowed for recalibration, ensuring the norms align with market dynamics and prevent excessive leverage during potentially optimistic periods.
