RBI caps investment by lenders in AIFs at 10% of fund corpus
Mumbai, July 30 -- The Reserve Bank of India (RBI) on Tuesday capped investments by banks and non-bank financiers in alternative investment funds (AIFs) at 10% of the fund's corpus, two months after it proposed relaxations to its 2023 circular.
The central bank said no regulated entity should individually contribute more than 10% of the corpus of an AIF scheme and that the collective contribution of all such entities in any AIF should not cross 20% of the fund's corpus. The collective contribution limit is higher than the 15% figure proposed in May's draft circular.
The RBI said these norms will apply to commercial banks, cooperative banks, all Indian financial institutions, NBFCs and housing finance companies from 1 January 2026 or earlier...
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