.png){kind=logo}
The Reserve Bank of India has proposed a Rs. 1 crore minimum investment for securitisation notes. The draft also requires demat-only notes from October 1, 2026, to improve market transparency and efficiency.
The proposal covers commercial banks, small finance banks, NBFCs, and All India Financial Institutions. The RBI will accept public and stakeholder comments until August 27, 2026, before finalizing these changes.
The RBI said the changes aim to “improve efficiency, liquidity and transparency” in securitisation notes.
Securitisation allows banks and financial firms to pool loans and sell them through special entities. These loans can include home, vehicle, and personal loans that generate payments from borrowers.
Under the proposed rules, one investor must invest at least Rs. 1 crore in securitisation notes. The same Rs. 1 crore limit would apply whenever another investor buys these notes later.
The rule could keep most retail investors away from this market, given the high entry amount. Banks, insurers, mutual funds, pension funds, NBFCs, and wealthy investors could remain key participants.
The RBI also wants all securitisation notes issued, held, and transferred only through demat accounts. This change could make ownership records easier to track and transfers simpler for market participants.
The RBI has also proposed linking public offers with limits under existing SEBI regulations. If approved, the changes could make securitisation more organized while keeping participation largely institutional.
Also Read: Canara Bank Targets Up to $2.5 Billion in Foreign Currency Deposits Under RBI's FCNR(B) Window
