Regulatory Alerts2026-04-02
A circular dated April 2, 2026 amending the definition of financial companies in which banks are allowed to contribute without a maximum limit
Effective April 2, 2026, the Central Bank has significantly expanded the definition of "financial companies" in which banks can hold unlimited shares, amending a previous 2004 circular. This crucial update now explicitly includes fintech startups engaged in non-banking financial activities, consumer finance companies, and entities dedicated to financing small, medium, and micro-enterprises. Banks must implement this revised framework, which facilitates broader investment in these specific financial sectors by removing prior ownership limitations.
Share