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Banks Chill on Acquisitions with New RBI Rules, Fo' Shizzle

Banks Chill on Acquisitions with New RBI Rules, Fo' Shizzle

Yo, check it, banks be takin' it slow on that acquisition hustle, ya feel? With the RBI droppin' new guidelines on April 1, they gotta keep it real with smaller deals first. They can fund up to 20% of the capital while stayin' under that 75% cap, all smooth-like. MSMEs, that’s the spot, keepin' it chill and manageable, fo' shizzle.

Quick rundown

  1. RBI opens doors for cautious acquisition financing.
  2. Banks to start small with acquisition funding.
  3. New guidelines allow up to 20% funding of eligible capital.
  4. Valuation methodology includes independent valuers.
  5. Focus on MSME acquisitions for manageable risk.

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