<h1>RBI Sets New Guidelines for Acquiring Shares in Banks: Prior Approval, Due Diligence, and Voting Rights Capped at 26.</h1> The Reserve Bank of India (RBI) has issued guidelines for acquiring and holding shares or voting rights in banking companies, requiring prior approval for significant acquisitions. Applicants must submit a declaration and undergo due diligence to assess their suitability. Limits are set for non-promoter and promoter shareholdings, with specific conditions for Financial Action Task Force non-compliant jurisdictions. The RBI may permit higher shareholding in certain cases, imposing a lock-in period for significant shareholdings. Voting rights are capped at 26% of total voting rights, with specific conditions for depositories and beneficial interest holders. Compliance with these guidelines ensures regulated ownership in banking companies.