The RBI had restricted banks and financial institutions from investing in AIFS where there is an exposure to a firm to which they have already lent to, in order to address evergreening on loans. The regulator had asked banks and NBFCs to make 100 per cent provisions for the entire investment in such AIF schemes.
In a circular issued on Wednesday, the RBI said that its regulated entities (RES) will now be required to make provisioning only to the extent of the amount invested by the AIF scheme in the debtor company and not the entire investment.
This story is from the March 28, 2024 edition of Business Standard.
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This story is from the March 28, 2024 edition of Business Standard.
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