Regulatory Alerts2026-04-05
A circular dated April 2, 2026 amending the definition of financial companies in which banks are allowed to contribute without a maximum limit
The Central Bank has amended its August 24, 2004 circular, significantly expanding the definition of "financial companies." This updated definition now explicitly includes FinTech startups in non-banking financial activities, consumer finance companies, and companies financing medium, small, and micro enterprises. Consequently, banks are permitted to own shares in these newly categorized entities without the previous maximum limit, encouraging investment and participation in these developing financial sectors.
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