RBI Eases Rules for Banks' Equity Deals Under Some Conditions

Mumbai: Lenders will not need prior central bank approval to make equity investments if they have a capital risk-weighted asset ratio of 10 percent or more and have made a profit in the last financial year, the Reserve Bank of India said on Wednesday.

The RBI added the equity investments done without prior approval would need to be less than 10 per cent of the paid-up capital of the company, or less than one-fifth of paid-up capital if including subsidiaries or joint ventures.