RBI revises share acquisition norms for Payments Banks, reinforcing prior approval requirements and investor eligibility standards.
RBI Updates Shareholding Rules for Payments Banks
On October 1, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Payments Banks – Acquisition and Holding of Shares or Voting Rights) Amendment Directions, 2026. These revise the 2025 Master Direction, reinforcing that any person intending to acquire 5% or more of a Payments Bank’s shares or voting rights must obtain prior RBI approval.
The amendments clarify the definition of ‘control’, require detailed disclosures of financial and operational track records of promoters, and mandate minimum capital adequacy benchmarks for proposed investors. These changes aim to protect the integrity of low-cost, tech-driven financial services offered by Payments Banks.
Corporate and banking law practitioners must now factor in longer regulatory timelines when structuring investments in Payments Banks. The amendments underscore RBI’s continued emphasis on preventing non-financial entities from gaining informal control through complex equity chains.
Citations
- Reserve Bank of India (Payments Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025