Mains Answer Writing - 3 Oct, 2025

GS3

Economy

15 marks

Recently, the RBI permitted banks to finance corporate mergers & acquisitions and allowed rupee-denominated loans to neighboring countries while keeping the repo rate unchanged at 5.5%. In this context, discuss how these measures reflect India’s shift towards regional financial influence and strengthening of capital markets.

Tips for your answer

  • Start with context – Mention RBI’s recent announcements (M&A financing, rupee loans to neighbors, IPO financing limit hike, repo unchanged).
  • Link to significance – Explain how these steps promote corporate growth, deepen capital markets, and push rupee internationalization.
  • Broader analysis + way forward – Tie it to India’s regional financial influence, economic resilience, and suggest balanced regulation to avoid risks.

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