RBI just quietly boosted India’s economy by ₹10,00,000 crore. No big headlines. No drama. Just one smart rule that unlocks: ➝ Massive lending ➝ Stock market gains ➝ Faster infra growth Let’s break it down 👇 What happened? RBI slashed “provisioning” requirements for infrastructure loans: ➝ Old draft: 5% ➝ Final rule: just 1% One number change → affects banks, stocks, infra, jobs. It’s bigger than it looks. What is provisioning? Banks set aside cash in case a loan goes bad. It’s a safety cushion. ➝ Higher % = less money to lend ➝ Lower % = more money to fund projects RBI just made lending easier, faster, and cheaper. Final provisioning rules (effective Oct 1): * Under-construction infra ➝ 1% * Commercial real estate ➝ 1.25% * Residential housing ➝ 0.75% * Operational projects ➝ 0.4% * Delayed projects ➝ +0.375%/quarter Let’s simplify with an example: ₹1,000 crore loan: ➝ 5% rule: ₹50 crore locked ➝ 1% rule: ₹10 crore locked That’s ₹40 crore freed per loan. Now multiply that across 1000s of loans… This is how policy changes markets. Market reaction (June 20): * PFC ➝ +4.7% * REC ➝ +4.8% * IREDA ➝ +5% * SBI, BoB ➝ up More capital ➝ More lending ➝ More profits ➝ Higher stock prices The market understood the signal fast. Positive for lenders.” – Emkay “Reduces project risk.” – Citi “Boosts credit growth.” – IIFL ✅ Infra lenders are happy ✅ Banks are relieved ✅ Investors are bullish India’s infra dream needs this: ➝ $1.4 Trillion National Infra Pipeline ➝ Roads, railways, smart cities ➝ Bullet trains, ports, renewable energy This rule unlocks capital that builds the future. The math that matters: ₹100 crore loan: ➝ 5% provisioning ➝ ₹5 crore locked ➝ 1% ➝ ₹1 crore locked ➝ ₹4 crore freed Do this across ₹10L+ crore of infra loans… That's a massive credit unlock. Why do we even need provisioning? To protect against: * Project delays * Cost overruns * Loan defaults But too much = credit crunch. RBI found the sweet spot between caution & growth. RBI added safeguards too: * Delays = higher provisioning * Infra: +0.375% every 3 months * Max delay allowed: 3 years (infra), 2 years (non-infra) This isn’t blind easing - it’s smart lending discipline. Who benefits from this? ➝ Banks/NBFCs ➝ more capital to lend ➝ Infra firms ➝ cheaper funding ➝ Investors ➝ stronger PSU stocks ➝ Citizens ➝ faster roads, power, housing This is a 4-way win. Why infra = India’s growth engine * 40% of industrial output * 30M+ jobs * Power, roads, housing, logistics * Strong multiplier effect on GDP This rule fuels the machine India depends on. What’s next from RBI? Already eased: * Gold loan rules * NBFC restrictions * Now: Infra provisioning Expect more credit-positive moves in FY26. RBI is saying: ➝ “We’re ready to back India’s buildout.” takeaway: One rule. One % change. ➝ Unlocked ₹10L+ crore in lending ➝ Boosted stock market confidence ➝ Supports infra, jobs, growth It’s not just “easing.” It’s a catalyst for India's next bull run.🇮🇳