business rbi moots 15 cap on banks nbfcs investments in aifs

Rbi Moots 15% Cap On Banks, Nbfcs' Investments In Aifs

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The Reserve Bank of India has proposed new guidelines capping regulated entities' (RE) investments in Alternative Investment Funds (AIFs) at 15% of total lender investment. While unrestricted investments up to 5% of an AIF's corpus are permitted, exceeding this limit and having downstream debt exposure triggers a 100% provisioning requirement.