Since late 2024, RBI has been frowning at investors having control of multiple lenders. PE firms that have held 20% or more in non-bank lenders have previously had to divest holdings. Imposing such ‘non-compete’ clauses for PEs may even be perceived as a regulatory overreach. It is likely to impact credit growth among those who remain unbanked, reduce exit optionality and squeeze out critical FDI equity inflows
