Headline: RBI Draft ECB Reforms Eye 10% Tier-1 Cap for Bank Acquisition Finance
Bullet Points:
- India Inc’s M&A deal value in H1 2025 stood at USD 50.5 billion, according to EY data cited in the article.
- Under the draft RBI norms, Indian banks can extend acquisition-finance ECBs only up to 10% of their Tier-1 capital; lenders are asking for this ceiling to be raised to 20%-40% of net worth.
- At the current 10% limit, domestic banks have less than USD 30 billion (about Rs 2.5 lakh crore) available for acquisition financing.