AIFs Ask RBI to Relax Draft Investment Limits for Banks
Why in the news
The AIF industry pushed back on proposed caps in the RBI’s draft rules and asked for more room for regulated lenders to invest in such funds.
Key facts
- Who asked: Alternative Investment Funds (AIFs), via the Indian Venture and Alternate Capital Association (IVCA).
- Whom they asked: the Reserve Bank of India (RBI).
- What they asked: higher investment limits for Regulated Entities (REs) such as banks and NBFCs.
- Document in question: RBI draft circular of May 19, 2025.
Who is who
| Term | Role here |
|---|---|
| AIFs | Funds seeking relaxation |
| IVCA | Industry body that made the plea |
| REs (banks, NBFCs) | Entities whose investment limits are proposed |
| RBI | Regulator that issued the draft |
Exam angle
- Full form: IVCA is the Indian Venture and Alternate Capital Association.
- Draft circular date: May 19, 2025.
- Term: Regulated Entities (REs) covers banks and NBFCs here.