Bank of America signed a deal to acquire as much as 49.9% interest in Jio Financial Services's non-bank financial company lending subsidiary.

Bank of America will make an investment of up to 18,268 crore, or roughly $1.9 billion, through a preferential allotment of equity shares and warrants to become a joint venture partner in Jio Credit.

The transaction initially gives the bank a 26.5% stake, with the option to go up to 49.9% upon exercise of the warrants.

The Mumbai-based lending firm is among India's fastest growing non-bank financial companies, with 30,667 crore, or roughly $3.2 billion, in assets under management within two years of operations.

The deal is expected to expand Bank of America's digital reach and knowledge of the Indian market. Jio Credit is focused on bridging the gap between traditional finance and accessibility through a wide array of lending products.

"India is one of the world's most important growth markets, and this investment reflects our confidence in its future," said Bank of America Chief Executive Brian Moynihan.

Jio Credit's board will have equal representation from Bank of America and Jio Financial Services. Jio Credit's current management team will remain.