The RBI has barred bank and non-bank lenders from investing in alternative investment funds that have exposure to the debtors or borrowers of these lenders.
If banks or NBFCs have such investments in AIFs, they have been given 30 days to liquidate their holdings or make 100% provisions against them.
The move, according to the RBI, is aimed at curbing "evergreening" of loans. According to NDTV Profit's conversations, deals worth Rs 20,000-25,000 crore may be hit.
NDTV Profit explains what the new rules means:
Add us to your Preferences
Set as your preferred source on Google
ADVERTISEMENT
RECOMMENDED FOR YOU
6 In 10 Train Passengers In Favour Of New Luggage Norms, Sceptical On Implementation: LocalCircles
Aug 22, 2025
Ambuja Cement, UltraTech Are Systematix Top Stock Pick In The Cement Pack — Check Target Price
Aug 12, 2025
Lemon Tree Shares Upgraded To 'Buy' By Dolat Capital Post Healthy Q1 Results — Check Target Price
Aug 12, 2025
'Buy' Gland Pharma Shares Maintains Motilal Oswal On Strong Q1 Earnings Growth, Valuation — Check Target Price
Aug 06, 2025
POPULAR
1
Nikki Haley Asks India To Take Trump’s View On Russian Oil 'Seriously'
2
Mazagon Dock Shipbuilders To Begin Price Negotiation For Rs 70,000 Crore Submarine Order
3
Ueda Expects Tight Labor Market To Keep Upward Pressure On Wages
4
Asia Cup 2025: Dream11 To Back Out As Team India's Title Sponsor, As Per Sources
5