RBI Exempts SWAMIH Fund from Tighter AIF Provisioning Norms
Why in the news
RBI gave the government-backed fund for stalled housing projects relief from stricter AIF provisioning.
Key facts
- Swamih (set up 2019) gives debt finance to stuck affordable and mid-income housing projects.
- 2024 rule: banks and NBFCs investing in an AIF must hold more provisions if they also lend to its projects, to stop evergreening.
- Swamih is exempt from double provisioning, lowering capital cost and speeding completion, which also limits losses for buyers and developers.
Exam angle
- Fund manager: SBICAP Ventures, SBI subsidiary.
- Evergreening: rolling over bad loans.