The Reserve Bank of India (RBI) has released the final versions of the amended directions, which simplify the approval process for subsequent acquisitions of major shareholding by mutual funds, insurance companies, and pension funds in commercial banks, small finance banks, payments banks, and local area banks.
On July 14, 2026, the RBI issued a draft Amendment Directions seeking feedback from regulated entities and stakeholders on the simplification of approval processes for subsequent acquisitions of major shareholding in banking companies. After examining the feedback received, modifications were incorporated into the final Amendment Directions. The RBI has now released the following finalized Amendment Directions: Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026; Reserve Bank of India (Small Finance Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026; Reserve Bank of India (Payments Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026; and Reserve Bank of India (Local Area Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026. These amendments come into immediate effect. The RBI also provided a statement on the feedback received on the draft Amendment Directions in an Annex. The deadline for submitting feedback was August 4, 2026.
Source:
Reserve Bank of India
