The Reserve Bank of India (RBI) on February 13, 2026, issued the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026, further to amend the Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025.
The following has been amended, namely:
• The RBI has introduced a structured framework permitting banks to extend acquisition financing to eligible non-financial Indian companies. The amendment allows banks to fund domestic strategic acquisitions, including the purchase of equity in listed and unlisted companies, subject to defined prudential safeguards.
• Eligible borrowers are required to meet prescribed financial criteria such as a minimum net worth and a track record of profitability.
• The Directions mandate that such acquisition loans shall be supported by proper due diligence, robust credit appraisal, and adequate security, which may include the pledge of acquired shares and additional collateral or guarantees.
• The revised framework aligns domestic banking norms with global practices while ensuring that banks maintain prudent risk management standards in extending acquisition finance.
[Notification no. - RBI/2025-26/211 DOR.CRE.REC.402/07-01-001/2025-26]
