RBI's new acquisition finance framework, which kicks in from today, marks a significant shift in India's corporate lending landscape. RBI (Commercial Banks-Credit Facilities) Amendment Directions 2026 (Revised) represents a structural change in India's credit architecture by bringing acquisition finance - long confined to specialised and alternative capital providers - into the regulated banking system.
Unlike mature markets, where leveraged lending is a core component of M&A activity, Indian acquirers have had limited access to domestic bank financing for acquisitions. Consequently, many transactions have relied on promoter capital, offshore borrowing structures, structured credit products or alternative lenders, increasing both the complexity and cost of acquisitions.
