The Reserve Bank of India (RBI) has issued draft guidelines allowing banks to finance Mergers and Acquisitions (M&A), a move expected to reshape Indian businesses. Annual M&A deal volumes already exceed $100 billion. The RBI's draft proposes limits, restricting M&A finance exposure to 10% of a bank's Tier-I capital and requiring financing for listed companies with a profit record. Only larger banks are anticipated to participate significantly in this evolving financial landscape.