RBI Seeks Comments on Draft Bank Shareholding Approval Framework

RBI Invites Comments on Draft One-Time Approval Framework for Subsequent Bank Shareholding Acquisitions

The Reserve Bank of India has invited public comments until August 4, 2026 on draft Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026 for Commercial Banks, Small Finance Banks, Payments Banks and Local Area Banks. Based on representations from Asset Management Companies and a review to simplify the approval process, the draft proposes one-time approval for subsequent acquisitions of major shareholding in the same banking company by qualifying mutual funds, insurance companies and pension funds, while retaining prior approval for the initial acquisition. The draft introduces the definition of a “qualifying person”, provides an explanation regarding indirect acquisition through portfolio managers, permits one-time approval through PRAVAAH, expands continuous monitoring provisions, requires reporting when aggregate holdings cross the five per cent threshold, and amends declaration requirements. Comments may be submitted through the RBI’s Connect 2 Regulate section or by email.

Reserve Bank of India

RBI invites public comments on the draft “Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026”

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

Press Release: 2026-2027/667

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

RBI/2026-27/__
DOR.HOL.REC.No.XX/16.13.100/2026-27 | Dated: XX, 2026

The Reserve Bank had issued the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025 (hereinafter referred as the ‘Master Direction’), on November 28, 2025, which mandates that any person seeking to make an initial acquisition of major shareholding in a banking company shall obtain prior approval of the Reserve Bank. Further, where such person’s aggregate shareholding, after the initial acquisition of major shareholding, falls below five percent at any point of time, prior approval of the Reserve Bank shall again be required before any subsequent acquisition of major shareholding. While obtaining prior approval shall continue to be mandatory for initial acquisition of major shareholding in a banking company, based on a review, it has now been decided to grant one-time approval for subsequent acquisitions of major shareholding in the same banking company by mutual funds, insurance companies and pension funds, subject to certain requirements.

2. Accordingly, in exercise of the powers conferred by Sections 12, 12B, and 35A of the Banking Regulation Act, 1949, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.

3. These instructions shall be called the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026.

4. These Directions shall come into force with immediate effect.

5. These Amendment Directions modify the Master Direction as under:

(1) In Chapter I, Section C (Definitions), para 4, after item (viii) under Definition at sub-para (2), Explanation to item (viii) shall be inserted as under:

“Explanation: Acquisition by a client may not be treated as indirect acquisition by its portfolio manager if all the following conditions are met:

(a) the client is the registered owner of the shares and is entitled to exercise the voting rights therein;

(b) the portfolio manager is acting as an advisor to the client providing only non-binding investment / divestment advice; and

(c) voting rights exercised by the portfolio manager in the banking company on behalf of the client, if any, is based on a specific mandate from the client.”

(2) In Chapter I, Section C (Definitions), para 4, after Definition at sub-para (6), Definition (6A) shall be inserted as under:

“(6A) ‘qualifying person’ in respect of a banking company means a person satisfying all the following conditions:

(i) the person is an applicant or a major shareholder or has ceased to be a major shareholder of the same banking company;

(ii) the person is a mutual fund registered with the Securities and Exchange Board of India, or a pension fund registered with the Pension Fund Regulatory and Development Authority, or an insurance company registered with the Insurance Regulatory and Development Authority of India; and

(iii) the person does not belong to the promoter group or group of the banking company.

Explanation: For the purpose of this definition, the ‘group of a banking company’ shall be determined as per definition of ‘group entity’ in the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025.”

(3) In Chapter II – Prior Approval for Acquisition, Paragraph 6(2) shall be amended by addition of “and for qualifying persons seeking one-time approval as mentioned in paragraph 14” after “For acquisition of 10 per cent or more in the banking company”.

(4) In Chapter II – Prior Approval for Acquisition, Paragraph 14 shall be amended by addition of the following, namely:

“Provided that the Reserve Bank may, at its discretion and based on a specific request being made through PRAVAAH, grant one-time approval to a qualifying person for subsequent acquisitions of major shareholding up to 10 per cent of the paid-up share capital or voting rights of a banking company, subject to the conditions specified in such approval and compliance with all other applicable provisions of these directions. Unless such one-time approval is revoked by the Reserve Bank, a qualifying person, who has obtained one-time approval but does not have major shareholding in the banking company at a point of time, shall be referred to as a ‘qualifying person with one-time approval’.

Provided further that the concerned banking company shall furnish its comments to the Reserve Bank in Form A1 in the same manner as specified in paragraph 10 above.”

(5) In Chapter III – Continuous Monitoring Arrangements, Paragraph 17(4) shall be inserted as under:

“17(4) qualifying persons with one-time approval”

(6) In Chapter III – Continuous Monitoring Arrangements, Paragraph 18 shall be amended by substitution of all the references to “major shareholders / applicants” with “major shareholders / applicants / qualifying persons with one-time approval”.

(7) In Chapter III – Continuous Monitoring Arrangements, Paragraphs 19 and 20 shall be amended by substitution of the references to “major shareholder” with “major shareholder / qualifying person with one-time approval”.

(8) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, Paragraph 5 shall be amended by addition of the following, namely:

“Provided that the Reserve Bank may, at its discretion and based on a specific request being made through PRAVAAH, grant one-time approval to a qualifying person for subsequent acquisitions of major shareholding up to 10 per cent of the paid-up share capital or voting rights of a banking company, subject to the conditions specified in such approval and compliance with all other applicable provisions of these directions. Unless such one-time approval is revoked by the Reserve Bank, a qualifying person, who has obtained one-time approval but does not have major shareholding in the banking company at a point of time, shall be referred to as a ‘qualifying person with one-time approval’.”

(9) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, Paragraph 9 shall be amended by insertion of “or qualifying persons with one-time approval” after “prior approval”.

(10) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, after para 9, Paragraph 9A shall be inserted as under:

“9A. After the initial acquisition of major shareholding, major shareholders who have obtained one-time approval and qualifying persons with one-time approval shall report decrease or increase of the aggregate holding to below or above five per cent of total paid-up share capital or voting rights of the banking company, respectively, to the Reserve Bank and the concerned banking company within one day of such an event.”

(11) In Form A – Declaration to be submitted by the applicants, after S.No.31 and before S.No.32, the title shall be substituted by the following, namely:

“Additional information to be submitted by the applicants / persons / major shareholders intending to acquire aggregate holding of 10 percent or more in the banking company and by the qualifying persons seeking one-time approval / who have obtained one-time approval”.

(Scenta Joy)
Chief General Manager

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

RBI/2026-27/__
DOR.HOL.REC.No.XX/16.13.100/2026-27 | Dated: XX, 2026

The Reserve Bank had issued the Reserve Bank of India (Small Finance Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025 (hereinafter referred as the ‘Master Direction’), on November 28, 2025, which mandates that any person seeking to make an initial acquisition of major shareholding in a banking company shall obtain prior approval of the Reserve Bank. Further, where such person’s aggregate shareholding, after the initial acquisition of major shareholding, falls below five percent at any point of time, prior approval of the Reserve Bank shall again be required before any subsequent acquisition of major shareholding. While obtaining prior approval shall continue to be mandatory for initial acquisition of major shareholding in a banking company, based on a review, it has now been decided to grant one-time approval for subsequent acquisitions of major shareholding in the same banking company by mutual funds, insurance companies and pension funds, subject to certain requirements.

2. Accordingly, in exercise of the powers conferred by Sections 12, 12B, and 35A of the Banking Regulation Act, 1949, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.

3. These instructions shall be called the Reserve Bank of India (Small Finance Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026.

4. These Directions shall come into force with immediate effect.

5. These Amendment Directions modify the Master Direction as under:

(1) In Chapter I, Section C (Definitions), para 4, after item (viii) under Definition at sub-para (2), Explanation to item (viii) shall be inserted as under:

“Explanation: Acquisition by a client may not be treated as indirect acquisition by its portfolio manager if all the following conditions are met:

(a) the client is the registered owner of the shares and is entitled to exercise the voting rights therein;

(b) the portfolio manager is acting as an advisor to the client providing only non-binding investment / divestment advice; and

(c) voting rights exercised by the portfolio manager in the banking company on behalf of the client, if any, is based on a specific mandate from the client.”

(2) In Chapter I, Section C (Definitions), para 4, after Definition at sub-para (6), Definition (6A) shall be inserted as under:

“(6A) ‘qualifying person’ in respect of a banking company means a person satisfying all the following conditions:

(i) the person is an applicant or a major shareholder or has ceased to be a major shareholder of the same banking company;

(ii) the person is a mutual fund registered with the Securities and Exchange Board of India, or a pension fund registered with the Pension Fund Regulatory and Development Authority, or an insurance company registered with the Insurance Regulatory and Development Authority of India; and

(iii) the person does not belong to the promoter group of the banking company.”

(3) In Chapter II – Prior Approval for Acquisition, Paragraph 6(2) shall be amended by addition of “and for qualifying persons seeking one-time approval as mentioned in paragraph 14” after “For acquisition of 10 per cent or more in the banking company”.

(4) In Chapter II – Prior Approval for Acquisition, Paragraph 14 shall be amended by addition of the following, namely:

“Provided that the Reserve Bank may, at its discretion and based on a specific request being made through PRAVAAH, grant one-time approval to a qualifying person for subsequent acquisitions of major shareholding up to 10 per cent of the paid-up share capital or voting rights of a banking company, subject to the conditions specified in such approval and compliance with all other applicable provisions of these directions. Unless such one-time approval is revoked by the Reserve Bank, a qualifying person, who has obtained one-time approval but does not have major shareholding in the banking company at a point of time, shall be referred to as a ‘qualifying person with one-time approval’.

Provided further that the concerned banking company shall furnish its comments to the Reserve Bank in Form A1 in the same manner as specified in paragraph 10 above.”

(5) In Chapter III – Continuous Monitoring Arrangements, Paragraph 17(4) shall be inserted as under:

“17(4) qualifying persons with one-time approval”

(6) In Chapter III – Continuous Monitoring Arrangements, Paragraph 18 shall be amended by substitution of all the references to “major shareholders / applicants” with “major shareholders / applicants / qualifying persons with one-time approval”.

(7) In Chapter III – Continuous Monitoring Arrangements, Paragraphs 19 and 20 shall be amended by substitution of the references to “major shareholder” with “major shareholder / qualifying person with one-time approval”.

(8) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, Paragraph 5 shall be amended by addition of the following, namely:

“Provided that the Reserve Bank may, at its discretion and based on a specific request being made through PRAVAAH, grant one-time approval to a qualifying person for subsequent acquisitions of major shareholding up to 10 per cent of the paid-up share capital or voting rights of a banking company, subject to the conditions specified in such approval and compliance with all other applicable provisions of these directions. Unless such one-time approval is revoked by the Reserve Bank, a qualifying person, who has obtained one-time approval but does not have major shareholding in the banking company at a point of time, shall be referred to as a ‘qualifying person with one-time approval’.”

(9) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, Paragraph 9 shall be amended by insertion of “or qualifying persons with one-time approval” after “prior approval”.

(10) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, after para 9, Paragraph 9A shall be inserted as under:

“9A. After the initial acquisition of major shareholding, major shareholders who have obtained one-time approval and qualifying persons with one-time approval shall report decrease or increase of the aggregate holding to below or above five per cent of total paid-up share capital or voting rights of the banking company, respectively, to the Reserve Bank and the concerned banking company within one day of such an event.”

(11) In Form A – Declaration to be submitted by the applicants, after S.No.31 and before S.No.32, the title shall be substituted by the following, namely:

“Additional information to be submitted by the applicants / persons / major shareholders intending to acquire aggregate holding of 10 percent or more in the banking company and by the qualifying persons seeking one-time approval / who have obtained one-time approval”.

(Scenta Joy)
Chief General Manager

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

RBI/2026-27/__
DOR.HOL.REC.No.XX/16.13.100/2026-27 | Dated: XX, 2026

The Reserve Bank had issued the Reserve Bank of India (Payments Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025 (hereinafter referred as the ‘Master Direction’), on November 28, 2025, which mandates that any person seeking to make an initial acquisition of major shareholding in a banking company shall obtain prior approval of the Reserve Bank. Further, where such person’s aggregate shareholding, after the initial acquisition of major shareholding, falls below five percent at any point of time, prior approval of the Reserve Bank shall again be required before any subsequent acquisition of major shareholding. While obtaining prior approval shall continue to be mandatory for initial acquisition of major shareholding in a banking company, based on a review, it has now been decided to grant one-time approval for subsequent acquisitions of major shareholding in the same banking company by mutual funds, insurance companies and pension funds, subject to certain requirements.

2. Accordingly, in exercise of the powers conferred by Sections 12, 12B, and 35A of the Banking Regulation Act, 1949, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.

3. These instructions shall be called the Reserve Bank of India (Payments Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026.

4. These Directions shall come into force with immediate effect.

5. These Amendment Directions modify the Master Direction as under:

(1) In Chapter I, Section C (Definitions), para 4, after item (viii) under Definition at sub-para (2), Explanation to item (viii) shall be inserted as under:

“Explanation: Acquisition by a client may not be treated as indirect acquisition by its portfolio manager if all the following conditions are met:

(a) the client is the registered owner of the shares and is entitled to exercise the voting rights therein;

(b) the portfolio manager is acting as an advisor to the client providing only non-binding investment / divestment advice; and

(c) voting rights exercised by the portfolio manager in the banking company on behalf of the client, if any, is based on a specific mandate from the client.”

(2) In Chapter I, Section C (Definitions), para 4, after Definition at sub-para (6), Definition (6A) shall be inserted as under:

“(6A) ‘qualifying person’ in respect of a banking company means a person satisfying all the following conditions:

(i) the person is an applicant or a major shareholder or has ceased to be a major shareholder of the same banking company;

(ii) the person is a mutual fund registered with the Securities and Exchange Board of India, or a pension fund registered with the Pension Fund Regulatory and Development Authority, or an insurance company registered with the Insurance Regulatory and Development Authority of India; and

(iii) the person does not belong to the promoter group of the banking company.”

(3) In Chapter II – Prior Approval for Acquisition, Paragraph 6(2) shall be amended by addition of “and for qualifying persons seeking one-time approval as mentioned in paragraph 14” after “For acquisition of 10 per cent or more in the banking company”.

(4) In Chapter II – Prior Approval for Acquisition, Paragraph 14 shall be amended by addition of the following, namely:

“Provided that the Reserve Bank may, at its discretion and based on a specific request being made through PRAVAAH, grant one-time approval to a qualifying person for subsequent acquisitions of major shareholding up to 10 per cent of the paid-up share capital or voting rights of a banking company, subject to the conditions specified in such approval and compliance with all other applicable provisions of these directions. Unless such one-time approval is revoked by the Reserve Bank, a qualifying person, who has obtained one-time approval but does not have major shareholding in the banking company at a point of time, shall be referred to as a ‘qualifying person with one-time approval’.

Provided further that the concerned banking company shall furnish its comments to the Reserve Bank in Form A1 in the same manner as specified in paragraph 10 above.”

(5) In Chapter III – Continuous Monitoring Arrangements, Paragraph 17(4) shall be inserted as under:

“17(4) qualifying persons with one-time approval”

(6) In Chapter III – Continuous Monitoring Arrangements, Paragraph 18 shall be amended by substitution of all the references to “major shareholders / applicants” with “major shareholders / applicants / qualifying persons with one-time approval”.

(7) In Chapter III – Continuous Monitoring Arrangements, Paragraphs 19 and 20 shall be amended by substitution of the references to “major shareholder” with “major shareholder / qualifying person with one-time approval”.

(8) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, Paragraph 5 shall be amended by addition of the following, namely:

“Provided that the Reserve Bank may, at its discretion and based on a specific request being made through PRAVAAH, grant one-time approval to a qualifying person for subsequent acquisitions of major shareholding up to 10 per cent of the paid-up share capital or voting rights of a banking company, subject to the conditions specified in such approval and compliance with all other applicable provisions of these directions. Unless such one-time approval is revoked by the Reserve Bank, a qualifying person, who has obtained one-time approval but does not have major shareholding in the banking company at a point of time, shall be referred to as a ‘qualifying person with one-time approval’.”

(9) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, Paragraph 9 shall be amended by insertion of “or qualifying persons with one-time approval” after “prior approval”.

(10) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, after para 9, Paragraph 9A shall be inserted as under:

“9A. After the initial acquisition of major shareholding, major shareholders who have obtained one-time approval and qualifying persons with one-time approval shall report decrease or increase of the aggregate holding to below or above five per cent of total paid-up share capital or voting rights of the banking company, respectively, to the Reserve Bank and the concerned banking company within one day of such an event.”

(11) In Form A – Declaration to be submitted by the applicants, after S.No.31 and before S.No.32, the title shall be substituted by the following, namely:

“Additional information to be submitted by the applicants / persons / major shareholders intending to acquire aggregate holding of 10 percent or more in the banking company and by the qualifying persons seeking one-time approval / who have obtained one-time approval”.

(Scenta Joy)
Chief General Manager

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

RBI/2026-27/__
DOR.HOL.REC.No.XX/16.13.100/2026-27 | Dated: XX, 2026

The Reserve Bank had issued the Reserve Bank of India (Local Area Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025 (hereinafter referred as the ‘Master Direction’), on November 28, 2025, which mandates that any person seeking to make an initial acquisition of major shareholding in a banking company shall obtain prior approval of the Reserve Bank. Further, where such person’s aggregate shareholding, after the initial acquisition of major shareholding, falls below five percent at any point of time, prior approval of the Reserve Bank shall again be required before any subsequent acquisition of major shareholding. While obtaining prior approval shall continue to be mandatory for initial acquisition of major shareholding in a banking company, based on a review, it has now been decided to grant one-time approval for subsequent acquisitions of major shareholding in the same banking company by mutual funds, insurance companies and pension funds, subject to certain requirements.

2. Accordingly, in exercise of the powers conferred by Sections 12, 12B, and 35A of the Banking Regulation Act, 1949, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.

3. These instructions shall be called the Reserve Bank of India (Local Area Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026.

4. These Directions shall come into force with immediate effect.

5. These Amendment Directions modify the Master Direction as under:

(1) In Chapter I, Section C (Definitions), para 4, after item (viii) under Definition at sub-para (2), Explanation to item (viii) shall be inserted as under:

“Explanation: Acquisition by a client may not be treated as indirect acquisition by its portfolio manager if all the following conditions are met:

i. the client is the registered owner of the shares and is entitled to exercise the voting rights therein;

ii. the portfolio manager is acting as an advisor to the client providing only non-binding investment / divestment advice; and

iii. voting rights exercised by the portfolio manager in the banking company on behalf of the client, if any, is based on a specific mandate from the client.”

(2) In Chapter I, Section C (Definitions), para 4, after Definition at sub-para (6), Definition (6A) shall be inserted as under:

“(6A) ‘qualifying person’ in respect of a banking company means a person satisfying all the following conditions:

i. the person is an applicant or a major shareholder or has ceased to be a major shareholder of the same banking company;

ii. the person is a mutual fund registered with the Securities and Exchange Board of India, or a pension fund registered with the Pension Fund Regulatory and Development Authority, or an insurance company registered with the Insurance Regulatory and Development Authority of India; and

iii. the person does not belong to the promoter group of the banking company.”

(3) In Chapter II – Prior Approval for Acquisition, Paragraph 6(2) shall be amended by addition of “and for qualifying persons seeking one-time approval as mentioned in paragraph 14” after “For acquisition of 10 per cent or more in the banking company”.

(4) In Chapter II – Prior Approval for Acquisition, Paragraph 14 shall be amended by addition of the following, namely:

“Provided that the Reserve Bank may, at its discretion and based on a specific request being made through PRAVAAH, grant one-time approval to a qualifying person for subsequent acquisitions of major shareholding up to 10 per cent of the paid-up share capital or voting rights of a banking company, subject to the conditions specified in such approval and compliance with all other applicable provisions of these directions. Unless such one-time approval is revoked by the Reserve Bank, a qualifying person, who has obtained one-time approval but does not have major shareholding in the banking company at a point of time, shall be referred to as a ‘qualifying person with one-time approval’.

Provided further that the concerned banking company shall furnish its comments to the Reserve Bank in Form A1 in the same manner as specified in paragraph 10 above.”

(5) In Chapter III – Continuous Monitoring Arrangements, Paragraph 17(4) shall be inserted as under:

“17(4) qualifying persons with one-time approval”

(6) In Chapter III – Continuous Monitoring Arrangements, Paragraph 18 shall be amended by substitution of all the references to “major shareholders / applicants” with “major shareholders / applicants / qualifying persons with one-time approval”.

(7) In Chapter III – Continuous Monitoring Arrangements, Paragraphs 19 and 20 shall be amended by substitution of the references to “major shareholder” with “major shareholder / qualifying person with one-time approval”.

(8) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, Paragraph 5 shall be amended by addition of the following, namely:

“Provided that the Reserve Bank may, at its discretion and based on a specific request being made through PRAVAAH, grant one-time approval to a qualifying person for subsequent acquisitions of major shareholding up to 10 per cent of the paid-up share capital or voting rights of a banking company, subject to the conditions specified in such approval and compliance with all other applicable provisions of these directions. Unless such one-time approval is revoked by the Reserve Bank, a qualifying person, who has obtained one-time approval but does not have major shareholding in the banking company at a point of time, shall be referred to as a ‘qualifying person with one-time approval’.”

(9) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, Paragraph 9 shall be amended by insertion of “or qualifying persons with one-time approval” after “prior approval”.

(10) In Annex I – Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, after para 9, Paragraph 9A shall be inserted as under:

“9A. After the initial acquisition of major shareholding, major shareholders who have obtained one-time approval and qualifying persons with one-time approval shall report decrease or increase of the aggregate holding to below or above five per cent of total paid-up share capital or voting rights of the banking company, respectively, to the Reserve Bank and the concerned banking company within one day of such an event.”

(11) In Form A – Declaration to be submitted by the applicants, after S.No.31 and before S.No.32, the title shall be substituted by the following, namely:

“Additional information to be submitted by the applicants / persons / major shareholders intending to acquire aggregate holding of 10 percent or more in the banking company and by the qualifying persons seeking one-time approval / who have obtained one-time approval”.

(Scenta Joy)
Chief General Manager