RBI Grants One‑Time 10% Shareholding Approval to Major DIIs

RBI approved a rule on May 1, 2026 that lets eligible DIIs raise their bank shareholdings to 10% in a single approval.

Under the old regime, every time a DIi crossed 5% of a bank’s paid‑up capital, it had to seek fresh clearance from RBI. The new rule removes that hurdle, allowing a one‑time approval for the entire 10% stake.

Eligible DIIs include mutual funds, pension schemes and insurance companies that currently hold up to 5% of a bank’s shares. HDFC Mutual Fund, which holds 3.8% in Axis Bank, can now increase to 10% without additional RBI clearance.

RBI spokesperson Anil Kumar said, "The change will streamline the investment process and reduce administrative delays for large investors." AMFI welcomed the move, noting it will boost confidence in the banking sector.

Rajesh Kumar, portfolio manager at SBI Mutual Fund, said the new rule gives him flexibility to adjust holdings in response to market shifts. RBI will monitor compliance through quarterly reports, and banks will be required to disclose any DIi holdings above 5% in their annual disclosures.