RBI eases bank stake rules for mutual funds, insurers

The Reserve Bank of India on Thursday finalised its July proposal to simplify bank shareholding regulations. Under the new rules, eligible mutual funds, insurance companies and pension funds can now seek a single approval for subsequent acquisitions of major shareholdings up to 10 per cent in the same bank.

The move aims to streamline the approval process for institutional investors making multiple stake purchases in banks, reducing regulatory burden while maintaining oversight.