The RBI has approved the merger of Tata Capital and Tata Motors Finance.

Banking & Finance

The Reserve Bank of India (RBI) has approved the merger of Tata Motors Finance Limited (TMFL) with Tata Capital Limited (TCL), making it India’s 12th largest Non-Banking Finance Company (NBFC).


      - As part of the merger, TCL will issue its equity shares to TMFL shareholders, resulting in Tata Motors Limited (TML) holding a 4.7% stake in the new entity.

      - As of March 31, 2024, Tata Sons owns 92.83% of Tata Capital, with the remaining shares held by other Tata Group companies and trusts.

     

Main Points:-   (i) The merger received RBI approval after endorsements from the Competition Commission of India (CCI) and the boards of both companies.

      (ii) Tata Capital aims to expand its customer base in the growing markets for commercial vehicle and passenger car financing through this merger.

(iii) The RBI has imposed a monetary penalty of ₹14 lakh on Arunachal Pradesh Rural Bank for not complying with certain directives related to "Strengthening of Prudential Norms - Provisioning, Asset Classification, and Exposure Limit," as well as "Know Your Customer (KYC)" regulations.
About RBI

CEO : Shaktikanta Das
Headquarter : Mumbai
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