Article
A STUDY ON IMPACT OF RBI POLICIES ON LENDING
The Reserve Bank of India (RBI), as the central banking authority of the country, plays a crucial role in regulating and controlling the Indian financial system. Through various monetary and credit policies, the RBI influences lending activities, liquidity management, interest rates, and overall economic stability. Financial institutions, including Non-Banking Financial Companies (NBFCs), are significantly affected by RBI policies, particularly in the areas of lending operations and credit management. This study focuses on analysing the impact of RBI policies on lending activities, with specific reference to Bajaj Finance Ltd., one of India’s leading NBFCs. The research examines how RBI regulations, repo rate changes, CRR, SLR norms, and lending guidelines influence the lending practices, profitability, and operational strategies of Bajaj Finance. The primary objective of the study is to understand the relationship between RBI monetary policies and lending behaviour in the financial sector. The study also evaluates how Bajaj Finance adapts its lending strategies in response to changing regulatory policies. Primary data has been collected through a structured questionnaire from 100 respondents, including banking professionals, finance employees, and customers. Secondary data has been collected from RBI reports, Bajaj Finance annual reports, financial journals, and industry publications. Recent trends (2023–2025) indicate: • Frequent repo rate adjustments to control inflation • Digital transformation in lending operations • Increased regulatory focus on NBFCs • Growth of fintech-based lending • Expansion of consumer finance markets The findings reveal that RBI policies have a direct impact on lending rates, loan demand, customer borrowing behaviour, and profitability of financial institutions. Repo rate changes significantly influence borrowing costs, while stricter regulations affect lending flexibility.
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