Recently Reserve Bank of India (RBI) has notified that any person looking to acquire more than ___ per cent stake in a bank will need prior approval from the regulator?

Solution

The Reserve Bank of India (RBI) notified that any person looking to acquire more than 5 per cent stake in a bank will need prior approval from the regulator. After an acquisition, if the shareholding falls below 5 per cent, the person will be required to seek fresh approval from the RBI if the person intends to again raise the aggregate holding to 5 per cent or more. Any person from the Financial Action Task Force (FATF) non-compliant jurisdiction will not be allowed to acquire a major shareholding in a bank. It further announced that the permission of the Reserve Bank to acquire shares or voting rights in a banking company for non-promoter will be limited to 10 per cent in case of individuals, non-financial institutions, and financial institutions connected with large industrial houses. About FATF (Financial Action Task Force) Founded: 1989                                              Headquarters: Paris, France                           President: T Raja Kumar