Bank of America will invest up to $1.92 billion for a 49.9% stake in Jio Credit, a unit of Jio Financial Services, the companies said on Wednesday.

The U.S. lender will be a joint venture partner in Jio Financial's non-bank lending arm through a preferential allotment of equity shares and warrants.

The transaction initially gives Bank of America a 26.5% stake, which can go up to 49.9% upon exercise of the warrants.

The deal is the latest large investment in India's financial services sector, which include Japan's investment in Shriram Finance and Dubai-based bank Emirates NBD's 60% stake in lender RBL Bank.

"The investment will allow BofA to expand its participation in the rapidly growing Indian market ... while doing so with a partner that has local expertise," the companies said in a statement.