RBI’s Big Reform Package: What It Means for Customers and Real Estate

In its latest policy announcements, the Reserve Bank of India has unveiled a broad reform package aimed at protecting consumers, strengthening credit access, boosting real estate financing, and managing inflation risks. These measures signal a calibrated push for stability and inclusive growth.

Here’s a look at what’s changing…

Stronger Protection Against Digital Fraud

The RBI has proposed new guidelines to curb mis-selling, regulate loan recovery practices, and limit customer liability in unauthorised transactions. It also plans to compensate victims of small-value fraud up to ₹25,000 and introduce stronger digital payment security measures, especially for senior citizens.

Boost for MSMEs and Financial Inclusion

To improve credit access, the central bank has proposed doubling the collateral-free loan limit for MSMEs from ₹10 lakh to ₹20 lakh. It has also reviewed major inclusion schemes like the Lead Bank Scheme and Kisan Credit Card, with plans for updated guidelines and a unified reporting portal.

New Lifeline for Real Estate via REITs

Banks will now be allowed to lend directly to Real Estate Investment Trusts (REITs), subject to safeguards. Earlier, banks could only lend to REIT-linked SPVs. The move is expected to lower borrowing costs, improve liquidity, and strengthen real estate financing. Industry experts have welcomed the step, calling it crucial for maintaining stability in home loans and project financing.

Urban Cooperative Banks and NBFC Reforms

To strengthen UCBs, the RBI has raised unsecured loan limits and launched “Mission-SAKSHAM” to train over 1.4 lakh staff members. Meanwhile, small NBFCs without public funds will be exempted from registration, and branch expansion rules will be relaxed.

Inflation Outlook: Low Now, Risks Ahead

The RBI has projected retail inflation at 2.1% for FY26 but warned of a rise to 3.2% in Q4 due to base effects. While food supply remains strong and core inflation is stable, geopolitical tensions, energy prices, and weather risks remain key concerns.

Together, these measures aim to protect customers from fraud, improve MSME and real estate financing, strengthen cooperative banks, simplify NBFC regulation and maintain price stability. The RBI’s strategy reflects a balance between growth support and financial discipline.

(With inputs from ANI)