RBI proposes easing rules for mutual funds, insurers to acquire higher stake in banks

RBI has proposed draft amendments easing regulatory compliance for mutual funds, insurers, and pension funds to acquire higher stakes in banks. Existing significant investors with minimum 5% holding can get a one-time approval for further acquiring up to 10% of paid-up share capital or voting rights in a bank. The draft covers commercial banks, small finance banks, payments banks and local area banks, with public comments invited by August 4, 2026.