{"id":355384,"date":"2025-08-02T12:00:31","date_gmt":"2025-08-02T06:30:31","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=355384"},"modified":"2025-08-02T12:43:47","modified_gmt":"2025-08-02T07:13:47","slug":"rbi-issues-directions-investment-in-alternative-investment-fund","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/08\/02\/rbi-issues-directions-investment-in-alternative-investment-fund\/","title":{"rendered":"RBI lays down Directions on Investment in Alternative Investment Funds Scheme"},"content":{"rendered":"
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On 29-7-2025, the Reserve Bank of India (\u2018RBI\u2019)<\/span> notified the Reserve Bank of India (Investment in AIF) Directions, 2025<\/span> to regulate and streamline the how banks and other financial institutions invest in Alternative Investment Funds (\u2018AIFs\u2019).<\/span> The provisions will come into effect from 1-1-2026 unless the Regulated Entity (\u2018RE\u2019)<\/span> decided for any other date as per its internal policy.<\/p>\n

Applicable to investments by the following RE in units of Alternative Investment Funds Schemes:<\/h3>\n
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  1. Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks);<\/li>\n
  2. Primary (Urban) Co-operative Banks\/ State Co-operative Banks\/ Central Co-operative Banks;<\/li>\n
  3. All-India Financial Institutions;<\/li>\n
  4. \n

    Non-Banking Financial Companies (including Housing Finance Companies).<\/p>\n<\/li>\n<\/ol>\n

    Key Points:<\/h3>\n
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    1. The investment policy of the RE should have suitable provisions governing its investments in an Alternative Investment Funds Scheme<\/span>.<\/li>\n
    2. \n

      Limits on Investments and Provisioning:<\/p>\n