Mumbai, April 9 -- In a move to strengthen India's financial ecosystem, Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday announced six additional measures focused on banking regulation, fintech, and payment systems.

These initiatives were revealed by the RBI governor while announcing the Monetary Policy initiatives. The RBI plans to introduce a new market-based mechanism to enable the securitisation of stressed assets.

This will complement the existing Asset Reconstruction Company (ARC) route under the SARFAESI Act, 2002, and aim to deepen the secondary market for distressed loans.

Currently, co-lending arrangements are restricted to only priority sector loans by banks and Non-Banking Financial Companies (NBFCs), but t...