Banks urge RBI to ease liquidity rules for lending
Indian banks are asking the Reserve Bank of India (RBI) to loosen some liquidity rules so they can lend more easily.
Right now, people and businesses want more loans than banks have deposits for, and new RBI requirements are making things tighter.
New rules coming in
Banks will face stricter rules—like changes affecting how government bonds are treated and having to set aside extra funds for deposits made online or through mobile apps.
The RBI says these changes will roll out gradually, giving banks time to adjust.
The goal is to make the banking system safer overall.
Deposit and loan growth
Deposits grew just 10.6% from a year earlier as of Jan. 15, 2026, but loan demand shot up by 13.1%.
That gap means it's costing banks more to borrow money short-term—certificate of deposit rates have even topped treasury bill yields.
To help out, the RBI has announced measures that will inject more than $23 billion into the system.
RBI's bond purchase plan
The RBI also announced it will buy ₹1 trillion in government bonds in February to boost cash in the system.
All these moves show how tricky it is for India's fast-growing economy to keep up with credit demand while making sure there's enough money flowing safely through the banks.