MUMBAI: RBI has relaxed its earlier norms on alternate investment funds, which required lenders to make full provisions for their investments in AIFs if the fund invested in a company that the bank lent to.Under the revised norms, provisioning is required only for the portion of the bank or finance company’s investment in the AIF scheme that is further invested in the debtor company, and not the entire investment in the AIF scheme as required earlier. Also, investment by lenders in AIFs through intermediaries such as fund of funds or mutual funds are not affected.ExpandIn Dec 2023, RBI had asked banks to fully provide for investments in AIFs, which went on to invest in companies that the…
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RBI relaxes alternate fund norms for lenders
