← Latest news 
RBI U turns on AIF investing by banks and NBFCs with a sharp 10% cap
Economy
Published on 24 April 2026
One investor can now fund at most 10% of an AIF
The RBI has proposed curbs on banks and NBFCs investing in Alternative Investment Funds, capping any single regulated entity’s contribution to 10% of a scheme’s total corpus. The move tightens concentration risk and changes how financial firms allocate money into AIFs, with potential ripple effects for funding strategies and investment flows.
- RBI proposes a 10% cap for any single regulated entity in an AIF
- The cap applies to banks and NBFCs investing in AIF schemes
- Aim is to reduce concentration and related risk in AIF holdings
- New rules could reshape how firms choose and size AIF investments
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times