Indian Banks Seek Extended Timeline to Comply with RBI’s New Lending Regulations

Home » NEWS » Indian Banks Seek Extended Timeline to Comply with RBI’s New Lending Regulations

Indian Banks Seek Extended Timeline to Comply with RBI’s New Lending Regulations

Indian Banks, through the Indian Banks’ Association (IBA), have appealed to the Reserve Bank of India (RBI) for an extension of up to five years to fully comply with new regulations. The regulations are aimed at preventing overlapping lending activities within banking groups. The RBI’s draft circular, issued in October, currently proposes a two-year implementation period for these changes.

The regulations stipulate that only one entity within a banking group can engage in a specific type of permissible business. It eliminates overlap in lending operations between banks and their group entities. This move is expected to significantly impact major financial institutions including – HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Canara Bank, and Federal Bank. All of them currently operate subsidiaries engaged in parallel lending activities.

Download Our App here
Share this post :

Recent News

RBI Extends KYC Update Deadline for Low-Risk Customers to June 2026
June 13, 2025
New FASTag Policy: Pay ₹3,000 Once a Year for Unlimited Highway Travel
June 6, 2025
Fintech Industry Seeks Relief from RBI’s New DLG Norms
June 4, 2025
Online Payment Scams Cross 63,000 Cases and ₹733 Crore in Losses Over a Decade
June 3, 2025