RBI tweaks norms related to acquisition for banks
The Reserve Bank of India modified the rules governing the purchase and holding of bank shares on Monday to ensure that the ultimate ownership and control of the institutions remain adequately diversified and that the principal shareholders continue to be "fit and proper." The Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights in Banking Companies) Directions, 2023 is the official statement from the central bank. A master directive titled "Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights in Banking Companies) Directions, 2023" has been released by the regulator. According to the statement, "These directions are issued with the objective to ensure that the ultimate ownership and control of banking firms is adequately diversified and the principal shareholders of banking companies are 'fit and proper' on an ongoing basis. In accordance with the Master Direction, any individual planning to make an acquisition...