RBI to allow banks to fund domestic acquisitions

Business Oct 01, 2025

The Reserve Bank of India just proposed new rules letting Indian banks finally finance acquisitions by homegrown companies—a move they've been waiting on for years.
Until now, only foreign banks could offer this kind of funding.
RBI also plans to let banks lend more against shares, REITs, and InvITs, giving businesses more ways to raise money.

Draft guidelines for updates coming soon

Draft guidelines for these updates are coming soon.
RBI is also looking to scrap limits on loans backed by listed debt securities and make it easier for banks to lend to non-banking financial companies (NBFCs) working on infrastructure projects.
The idea is to help banks take smarter risks while supporting India's growing capital markets and making it simpler for businesses to expand.