RBI Measures to Boost Financial Inclusion MSME Credit and REIT Financing

The Reserve Bank of India announced a series of steps intended to improve credit delivery to underserved groups, enhance liquidity for small enterprises and broaden financing options for the real estate sector.  

These actions follow a detailed review of existing financial inclusion initiatives and include revised guidelines, a new reporting platform and targeted adjustments to loan thresholds. 

Financial inclusion framework revisions 

A comprehensive assessment of the Lead Bank Scheme, the Kisan Credit Card programme and the Business Correspondent model has been completed.  

Draft guidelines are set to be released shortly, covering operational procedures and monitoring requirements. Alongside this, a unified reporting portal will be introduced to manage Lead Bank Scheme data centrally. 

Collateral free MSME loan limit increase 

The threshold for collateral free loans to micro‑small‑medium enterprises has been raised from ₹10 lakh to ₹20 lakh.  

This change is expected to provide additional liquidity support to micro and small firms without the need for collateral. The revised limit will apply uniformly across designated banking branches. 

REIT financing provisions for banks 

Banks have been authorised to extend credit facilities to Real Estate Investment Trusts, provided prudential safeguards are observed.  

The central bank will monitor exposure limits, asset quality and risk management practices associated with REIT financing. This measure aims to improve capital flow into the real estate sector while maintaining overall financial stability. 

Read More: RBI to Unveil Unified Portal to Centralise Bank Data Management! 

Conclusion 

The announced revisions address gaps in last‑mile credit delivery, increase collateral free loan eligibility for MSMEs and enable banks to lend to REITs under tighter controls. These updates represent targeted adjustments to existing frameworks without altering broader monetary policy objectives. 

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