Based on a review undertaken in light of representations received from Asset Management Companies (AMCs) and in order to simplify approval process for subsequent acquisitions of major shareholding in a banking company by mutual funds, insurance companies and pension funds, the Reserve Bank of India has released today the following draft Amendment Directions:

i. Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026.

ii. Reserve Bank of India (Small Finance Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026.

iii. Reserve Bank of India (Payments Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026.

iv. Reserve Bank of India (Local Area Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026.

2. The comments / feedback on the said draft Amendment Directions may be submitted by the regulated entities and members of public / other stakeholders on or before August 4, 2026, through the following channels:

i. the 'Connect 2 Regulate' Section available on the Reserve Bank's website by following the corresponding hyperlink provided against each document in the page where they are hosted; or

ii. by email with the subject line 'Feedback on (full name of the draft Amendment Directions (including the type of Regulated Entity))'.

(Brij Raj)           
Chief General Manager

Major banking shareholding acquisitions: draft directions propose simplified approval for subsequent investments by institutional fund categories. Draft directions propose a simplified approval process for subsequent acquisitions of major shareholding or voting rights in banking companies by mutual funds, insurance companies and pension funds. The proposals cover commercial banks, small finance banks, payments banks and local area banks. Regulated entities, the public and other stakeholders may provide feedback through the Reserve Bank's online consultation facility or by email within the stated consultation period.