New Delhi, July 29 -- The Reserve Bank of India (RBI) has proposed that all securitisation notes be issued, held and transferred only in dematerialised (demat) form, as part of draft amendments aimed at improving efficiency, liquidity and transparency in the securitisation market.

The central bank released separate draft amendment directions for commercial banks, small finance banks, non-banking financial companies (NBFCs) and All India Financial Institutions (AIFIs), and has invited public comments until August 27, 2026.

The proposed rules are scheduled to come into effect from October 1, 2026.

Key Proposals

Under the draft norms, securitisation notes-financial instruments created by pooling loans such as housing or vehicle loans-wil...