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.
RBI eases restrictions on cash credit accounts, eases current account norms
The Reserve Bank of India has lifted all restrictions on banks opening and maintaining cash credit accounts, offering greater flexibility for short-term working capital loans.