{
  "id": 11650244,
  "title": "RBI Eases Bank Investment Rules For Mutual Funds, Allows One-Time Approval For Institutional Stake Up To 10%",
  "url": "https://urgent.news/2026/10/03/rbi-eases-bank-investment-rules-for-mutual-funds-allows-one-time",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-03T08:26:35.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/rbi-eases-bank-investment-rules-for-mutual-funds-allows-one-time-approval-for-institutional-stake-up-to-10"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) has streamlined regulations for institutional investors looking to buy shares in banks. Effective immediately, eligible investors can obtain one-time approval to increase their shareholdings up to 10% of a bank's paid-up capital or voting rights. This change, made possible by the RBI's Acquisition and Holding of Shares or Voting Rights in Banking Companies (Amendment) Directions, 2026, means investors won't have to reapply for permission each time their stake crosses a certain level.\n\nThe new rules apply to commercial, small finance, payments, and local area banks. Eligible institutions include mutual funds registered with SEBI, pension funds under PFRDA, and insurance companies governed by IRDAI. However, the investor must not be part of the bank's promoter group.\n\nTo apply, investors must submit their request through the RBI's PRAVAAH portal, and the targeted bank must also provide its input. The RBI can revoke approval if the investor fails to meet conditions or if the investor or a related party is no longer deemed suitable.\n\nOnce approved, investors must report any changes to their holding to the RBI and the bank within three working days of the change moving above or below the 5% threshold.",
  "summary": "The Reserve Bank of India (RBI) has simplified the framework governing investments by institutional investors in banks, allowing eligible entities to obtain one-time approval for subsequent share purchases that take their aggregate holding up to 10%. The central bank issued the Acquisition and Holding of Shares or Voting Rights in Banking Companies (Amendment) Directions, 2026, on Thursday. The…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}