The Reserve Bank of India (RBI) is considering easing restrictions on banks providing acquisition finance for mergers and acquisitions (M&A) in India. Historically, banks have been largely prohibited from lending for share acquisitions due to concerns about exposing public deposits to volatile equity markets. However, with India's M&A activity reaching significant volumes, the RBI is proposing a calibrated approach to allow banks a more constructive role in financing deals, reflecting a maturing capital market and a stronger banking system.