RBI revised AIF norms, requiring provisioning for debtor company investments only in AIFs.

The Reserve Bank of India (RBI) has revised its norms on Alternative Investment Funds (AIFs) for lenders. Under the updated rules, provisioning is only required for the portion of the bank or finance company's investment in the AIF scheme that is further invested in the debtor company. This change excludes the need for full provisioning on the entire investment in the AIF scheme. In addition, investments by lenders in AIFs through intermediaries such as fund of funds or mutual funds remain unaffected.