RBI Issues Draft Norms to Enable Banks to Fund Acquisitions

RBI set to allow banks to fund up to 70% of India Inc’s M&As

The monetary authority has also proposed lower risk weights for non-banks to lend to infrastructure projects at 50% if the borrower has repaid 10% of sanctioned

RBI proposes 70% cap onfinancing for acquisitions

The regulator asked banks to put in place a policy on acquisition finance, which defines the overall limit under the ‘direct capital market exposures’, eligibility of borrowers, security, margin, risk management and monitoring norms, among others.

RBI issues draft norms to enable banks to fund acquisitions

RBI's draft norms aim to enhance bank funding for acquisitions and increase loan limits for individuals investing in IPOs.

RBI draft allows banks to fund strategic acquisitions, mergers, and PSU disinvestments

RBI proposes guidelines letting banks fund mergers, acquisitions, and PSU buyouts with up to 70% financing, aiming for long-term value creation.

RBI to cap bank lending for corporate takeovers at 70% of deal value

Under the proposed rules, banks can finance up to 70 per cent of the acquisition value, with the balance 30 per cent to be funded by the acquiring company through its own equity.

RBI Proposes New Draft Norms for Banks to Facilitate Acquisition Funding

The Reserve Bank of India (RBI) has proposed to implement the rationalised norms from April 1, 2026, a move that will open up more funding avenues for corporates.