RBI's Acquisition and Holding of Shares or Voting Rights in Banking Companies Directions, 2023

FCS Amit Kumar Sharma | Last updated: 18 January 2023

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The Reserve Bank of India (RBI) has introduced new Directions for the acquisition and holding of shares or voting rights in banking companies. These rules aim to ensure diversified ownership and that major shareholders are consistently 'fit and proper', covering Local Area Banks, Small Finance Banks, and Payments Banks. The process requires prior approval for acquiring major shareholdings, with the RBI assessing applicants' financial soundness, experience, and reputation. Banking companies must also implement continuous monitoring of their major shareholders and report any changes or concerns to the RBI.

Introduction The Reserve Bank of India (RBI) has recently issued the Directions - Acquisition and Holding of Shares or Voting Rights in Banking Companies in order to ensure that the ultimate ownership and control of banking companies are well diversified and the major shareholders of banking comp

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About the Author

FCS Amit Kumar Sharma

Practicing Company Secretary

Im a Company Secretary with 7+ years of experience in providing corporate compliance to startups, waste management companies, Agri-tech, IT, Trusts and secretarial audit services to various listed and big companies. I have in-depth knowledge of Indian laws and regulations, including Income Tax, GST, Trademarks, Patents ... Read more

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