Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised)

31-Mar-2026 , 11:24:35 am | By CASANSAAR print

Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised)

RBI/2025-26/254
DOR.CRE.REC.446/07-01-001/2025-26

March 30, 2026

Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised)

Please refer to Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025 (hereinafter referred to as ‘the Directions’).

2. On a review, and in exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions (Revised) hereinafter specified.

3. The Amendment Directions (Revised) modify the Directions as under:

3(1) In paragraph 4(1) of ‘Chapter I - Preliminary’ of the Directions, the following modifications shall be effected:

3(1)(i) Sub-paragraph (i) shall be renumbered as (ib).

3(1)(ii) Sub-paragraph (vii) shall be substituted with the following:

(vii) “Collateral security” or “Collateral” means an asset on which a security charge is created in favour of the lender for securing a credit facility.

3(1)(iii) The following sub-paragraphs shall be inserted:

(ia) “Acquisition Finance” shall mean a financial facility or assistance provided to an eligible borrower entity for the purpose of acquiring control in a target company, (including through a scheme of amalgamation or merger). Such funding may also involve refinancing of existing debt of the target company if the refinancing is integral to the acquisition finance.

(iva) “Bridge Finance” shall mean financing a borrower for an interim period, not exceeding one year, for a legitimate business purpose where the borrower has a firm plan and capability to repay such loans by raising financial resources either through issuance of equity, debt or hybrid instruments or by divestiture/hive-off of a part of existing business/assets within the interim period.

(va) “Capital Market Intermediaries (CMIs)” shall mean regulated entities undertaking trade execution and market infrastructure services in capital markets, including broking, clearing, custody, market making or other incidental services.

Provided that CMIs shall not include Standalone Primary Dealers and Qualified Central Counterparty (QCCPs).

(vb) "Cash and cash equivalents” shall include cash, balances held in demand and term deposits placed with the lending bank and investments in units of overnight mutual funds (with a minimum haircut of 10 per cent).

(viiia) “Control” shall have the same meaning as defined in Section 2(27) of the Companies Act, 2013.

(xivb) “Eligible Securities” shall include the following securities:

(a) Listed Group-1 equity shares and preference shares;

Explanation: Group 1 securities as defined under instructions issued by Securities and Exchange Board of India (SEBI)

(b) Government Securities, including Treasury Bills and Sovereign Gold Bonds;