India cenbank not looking to revisit lending rules for proprietary traders, brokers, governor says

FILE PHOTO: Reserve Bank of India (RBI) Governor Sanjay Malhotra arrives at a press conference in Mumbai, India, February 6, 2026. REUTERS/Francis Mascarenhas/File Photo · Reuters

Reuters

Mon, 23 February 2026 at 4:52 pm GMT+9 1 min read

MUMBAI, Feb 23 (Reuters) - India’s central bank is not planning to revisit recently announced rules for bank ‌financing of proprietary traders and brokers, its governor ‌said on Monday.

In rules released earlier this month, the Reserve Bank of ​India raised the collateral requirements for bank guarantees to brokers and barred lending for proprietary trading by them. The changes are due to take effect from April 1.

Shares of brokerage ‌firms fell last week ⁠on concerns the rules would impact brokers’ profit margins and reduce trading volumes. Brokers have ⁠sought a review of the rules in a letter sent to the market regulator.

The rules were finalised after consultation, RBI ​Governor Sanjay ​Malhotra said at a press ​conference following the bank’s ‌board meeting.

“There is no change that we are contemplating,” he said.

INFLATION TARGETING REVIEW

Malhotra said the central bank has sent in its recommendations on India’s inflation-targeting framework to the government ahead of an upcoming review.

He did not disclose the recommendations.

India ‌mandates the central bank target retail ​inflation 4%, with a comfort ​band of 2%-6%. The ​target is up for review by the ‌end of March.

India recently revamped its ​retail inflation ​data, lowering the share of food in the basket of goods used to measure prices.

The changes, by themselves, ​will not impact ‌the central bank’s view on the appropriate inflation target, ​Malhotra said.

(Reporting by Nikunj Ohri; writing by Ira ​Dugal; Editing by Mrigank Dhaniwala)

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