Indian banks receive permission to finance acquisitions under new RBI rules
The Reserve Bank of India now allows lenders to finance up to 20 percent of acquisitions. This move aims to boost credit growth within the local markets.
The Reserve Bank of India (RBI) issued final rules on February 13, 2026, that allow Indian banks / lenders to provide acquisition financing up to 20% of their eligible capital base. Under the new regulations, lenders are permitted to provide loans for up to 75% of an acquisition's value, marking a significant expansion of credit facilities available for corporate transactions.
