RBI proposes 70% cap on acquisition financing
after close1 source ↓written by the desknot a recommendation
- on financing
- 70% cap
- lend
- ₹7,000 cr
- acquisition
- ₹10,000 cr
The Reserve Bank of India (RBI) has proposed a 70% cap on financing for acquisitions, allowing banks to lend up to ₹7,000 cr for a ₹10,000 cr acquisition. This draft circular aims to regulate banks' exposure to capital markets and acquisition finance, requiring banks to establish a clear policy on such funding.
This move may impact corporate financing strategies and could influence market dynamics as companies adjust to the new lending limits.
Not investment advice. For informational purposes only.