RBI makes new rules for#AlternativeInvestmentFunds – Good news for #VentureFunds and #Startups 🚀
The Reserve Bank of India (#RBI) has changed how much banks and #NBFCs can invest in AIFs.
This will make funding safer, more transparent, and more reliable.
✅ What has changed:
One bank or NBFC can put maximum 10% money in any one AIF.
All banks/NBFCs together can put maximum 15% in that AIF.
If a bank’s share is 5% or less → no extra rule.
If share is more than 5% and AIF invests in a company linked to that bank → bank must keep 100% money aside as safety.
💡 Why this helps (with an example):
Imagine an AIF was earlier getting 60% of its money from just 2 big banks.
If one bank had a problem, the whole fund could struggle.
Now, the AIF must bring money from many different investors — not just a few.
This makes funding more stable and less risky for both the fund and the startups it invests in.
🔹 Benefits:
More variety of investors → less dependence on one big player.
Safer for startups → funds can give money on time.
Clear rules → banks can approve funding faster.
Better trust from both Indian and global investors.
