RBI releases draft Master Direction on Prudential Regulation for AIFIs - 2021

The Reserve Bank has today placed on its website the Draft Reserve Bank of India (Prudential Regulations on Basel III Capital Framework, Exposure Norms, Significant Investments, Classification, Valuation and Operation of Investment Portfolio Norms and Resource Raising Norms for All India Financial Institutions) Directions, 2021. These Directions shall be applicable to the four All India Financial Institutions (AIFIs) viz., EXIM Bank, NABARD, NHB, and SIDBI.

It has been decided to implement the Basel III capital framework for the AIFIs as detailed out in the draft Directions. The draft Directions also consolidate and contain suitable modifications to the existing instructions on Exposure Norms, Classification, Valuation and Operation of Investment Portfolio Norms and Resource Raising Norms issued to the AIFIs. Further, the limits for investments by AIFIs in subsidiaries, financial services companies and non-financial services companies have been introduced as detailed in the draft Directions.

Comments on the draft Directions are invited from all the stakeholders which may be submitted by email with the subject line “Feedback on Draft Reserve Bank of India (Prudential Regulations for All India Financial Institutions) Directions, 2021” by November 30, 2021.

(Yogesh Dayal)     
Chief General Manager