RBI Exempts AIFI Investments in Long-Term Non-Financial Bonds From the 25% Exposure Ceiling Under Basel III Norms
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- By Chetan Kulasri
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- Last Updated on 20 February, 2025

Circular No. RBI/2024-25/116 DOR.MRG.REC.60/00-00-017/2024-25, Dated: 17.02.2025
RBI has notified the amendment in Basel III Capital Framework norms. Now, 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 3 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.
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