It has been decided that investments made by All India Financial Institutions (AIFIs), as per their statutory mandates, in long-term bonds and debentures (i.e., having minimum residual maturity of three years at the time of investment) issued by non-financial entities shall not be accounted for the purpose of the ceiling of 25 per cent applicable to investments included under Held to Maturity (HTM) category, specified under the Directions ibid.
| Reference Paragraph | Existing | Amendment |
| 34.2.3 | Investments as specified in sub-sections (ii) and (iii) above, shall not be accounted for the purpose of ceiling of 25 percent specified under section 34.2.1 of these Directions. | The following investments shall not be accounted for the purpose of ceiling of 25 percent specified under section 34.2.1 of these Directions: (i) investments as specified in sub-sections 34.2.2(ii) and 34.2.2(iii) above; and (ii) investments made by AIFIs, as per their statutory mandates, in long-term bonds and debentures (i.e., having minimum residual maturity of three years at the time of investment) issued by non-financial entities. |
This circular shall be applicable to the AIFIs regulated by the Reserve Bank, viz. the Export-Import Bank of India (EXIM Bank), the National Bank for Agriculture and Rural Development (NABARD), the National Bank for Financing Infrastructure and Development (NaBFID), the National Housing Bank (NHB) and the Small Industries Development Bank of India (SIDBI).
These instructions shall come into force with effect from April 1, 2025.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12783&Mode=0
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