Economy
RBI Eases Repeat Share-Buying Approvals for Funds in Banks
RBI now allows eligible funds one-time approval for subsequent major share acquisitions in the same bank.
What happened
The Reserve Bank of India’s October 1, 2026 directions retain mandatory prior approval for an institution’s initial major shareholding acquisition in a bank. They introduce one-time approval for subsequent major acquisitions by SEBI-registered mutual funds, PFRDA-registered pension funds and IRDAI-registered insurance companies, provided they are outside the bank’s promoter or group structure. The directions took effect immediately.
Why it matters
Eligible institutional investors face a simplified approval framework for repeat major acquisitions, while initial entry into a bank’s major shareholding remains subject to RBI approval.
Source: RBI Notifications