RBI Introduces Reforms for Buyouts & Acquisition Finance by Banks (2026)

In February 2026, the Reserve Bank of India (“RBI”) introduced a significant regulatory reform enabling banks to finance corporate acquisitions. The reform was implemented through the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026, read with the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2026, issued on February 13, 2026. Both sets of directions are scheduled to come into effect from April 1, 2026.