RBI's new rules on bank financing for company takeovers
Business
Starting April 2026, the RBI will let banks finance up to 75% of major company takeovers—something they couldn't do before.
The goal is to make mergers and acquisitions easier in India and lower borrowing costs.
What does this mean for Indian firms?
Before this, companies had to rely on non-bank lenders or private equity for buyout money, which was often expensive.
Now, with these new rules (plus relaxed rules for overseas borrowing), Indian firms can get cheaper loans directly from banks for takeovers.
This could mean more big deals, smoother business growth, and a stronger push for well-capitalised acquirers such as family conglomerates and unicorns.