RBI Introduces Framework for Banks to Finance Corporate Acquisitions in India: A Major Policy Shift

Oct 01, 2025 04:55 pm CST

The Reserve Bank of India has announced plans to create a framework enabling Indian banks to finance corporate acquisitions, addressing a longstanding demand from the banking sector. This policy shift includes removing regulatory ceilings on lending against listed debt securities, increasing limits for share-based lending, and enhancing IPO financing capabilities, all aimed at improving credit flow in the Indian economy.