What changed
Paragraph 18(4) of Chapter-III General Guidelines has been altered. The clause on acquisition-related finance now reads “Acquisition finance and bridge finance for financing of promoter's stake in new companies”. The clause on individual lending now reads “Lending to individuals against eligible securities”. The revision supersedes the February 13, 2026 amendment.
What it means for you
Banks can now formally offer promoter‑focused acquisition or bridge loans and extend credit to borrowers against approved securities. These products must be incorporated into existing loan portfolios and risk frameworks. The amendment overrides the earlier February guidance, aligning policy with the latest credit‑facility changes.
What you must do
- Review and update loan‑policy manuals to include the new acquisition‑finance and securities‑backed lending categories.
- Revise risk‑assessment models and credit‑approval workflows for the added product types.
- Train relationship managers and credit officers on eligibility criteria and documentation requirements.
- Communicate the changes to compliance and audit teams to ensure monitoring from the effective date.
Who it affects
Commercial banks, Credit risk and underwriting teams, Relationship managers, Compliance and audit functions
What new financing activities are now permitted?
Banks may provide acquisition and bridge financing to promoters of newly formed companies, and they may extend loans to individuals secured by eligible securities.
When must banks comply with the revised guidelines?
Compliance is required from the earlier of the bank’s adoption of the related credit‑facility amendment or 1 July 2026.
Does this amendment replace any earlier guidance?
Yes, it supersedes the February 13, 2026 amendment to the Undertaking of Financial Services directions.