India’s banking sector is in the middle of a massive transformation. This time, the trigger is not a crisis, but reforms, led by the Reserve Bank of India (RBI). The central bank’s decision to allow UAE’s NBD to acquire a controlling stake in RBL Bank, and the entry of Japan’s SMBC into YES Bank, are unprecedented in a system that has always kept foreign lenders at an arm’s length. Similarly, in the NBFC space, Japan’s MUFG is acquiring a stake in Shriram Finance, while Mizuho Financial Group is buying a majority stake in Avendus Capital. Finance Minister Nirmala Sitharaman has also made it clear that India needs bigger and globally competitive banks to fund its $7–10 trillion GDP target over the next decade.