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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues RBI (Local Area Banks - Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026

01-Oct-2026 | RBI/2026-27/278 DOR.HOL.REC.No.238/16.13.100/2026-27

RBI has issued the RBI (Local Area Banks - Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026. Key Highlights: 1. New definitions related to a qualifying person and a qualifying person with one-time approval have been inserted. 2. Para 6(2) has been amended, which states the fit and proper criteria for acquisition of 10 per cent or more in the banking company, and for qualifying persons seeking one-time approval. 3. Para 17(4) has been inserted, which states that a banking company shall continuously monitor the qualifying persons with one-time approval to ensure that they are ‘fit and proper’ on an ongoing basis. 4. Para 5A in Annex I has been inserted, which states that qualifying persons can seek one-time approval, either individually or collectively, from the Reserve Bank for subsequent acquisitions of major shareholding up to 10 per cent of the paid-up share capital or voting rights of a banking company. 5. Para 9A in Annex I has been inserted to state: After the initial acquisition of major shareholding, major shareholders who have obtained one-time approval and qualifying persons with one-time approval shall report a 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 three working days of such an event. Kindly refer to the attached document for more information.

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Corporate Laws

CDSL issues communique regarding Submission of report on Internal Audit of Registrar and Transfer Agent

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Blocking of Websites/Domains Pursuant to Orders of the Hon’ble High Court of Delhi

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