No more easy loans for trading: RBI's new rule
Starting April 2026, the RBI will require banks to lend to brokers and other market intermediaries only if they're fully backed by collateral.
No more easy loans for trading—banks must now apply stricter checks and asset-specific haircuts.
The move is all about keeping financial risks in check.
What this means for the market
If you follow markets or invest, this could mean less margin trading and fewer high-risk bets, since brokers will have to lock up more cash as collateral.
Experts like Citi warn that trading activity might dip as firms look for pricier non-bank funding.
For young investors, it's a heads-up: the landscape is shifting toward safer but possibly slower-moving markets.
Brokers are already on the move
The RBI wants banks to monitor collateral constantly and step in with margin calls if values drop.
Even bank guarantees given to exchanges will need solid backing—half of it in actual assets, with a quarter in cash.
Brokers are already prepping by moving away from partial fixed deposit setups and exploring new funding options just to keep up.