Finance
Sock JohnsonBanks Gear Up with New RBI Playbook for Acquisitions
Listen up, banks! The Reserve Bank of India just dropped some serious guidelines, and it’s game time! Starting April 1, these financial gladiators are stepping into the ring with cautious moves in acquisition financing. They’re flexing with smaller deals first, funding up to 20% of capital and no more than 75% of an acquisition's value. MSMEs, get ready, because the big leagues are coming, but they're keeping it selective!
few days ago | Subrata Panda
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.
