HomeCirculars › RBI/2009-2010/116

Consortium/Multiple Banking Norms Extended to AIFIs

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-2010/116 · issued 05 Aug 2009 · ~1 min read
Quick answerRBI extended consortium and multiple banking arrangement guidelines to select AIFIs (Exim Bank, NABARD, NHB, SIDBI), requiring them to share information among themselves and with banks, effective August 5, 2009.

What changed

RBI directed that existing guidelines on consortium and multiple banking arrangements, previously applicable only to banks, now apply equally to select all-India Financial Institutions (AIFIs). These AIFIs must follow the same information-sharing rules among themselves and with banks.

What it means for you

Banks and AIFIs must now coordinate more closely on large exposures, reducing information asymmetry and potential credit risk. This levels the playing field for lenders in consortium deals and strengthens overall credit monitoring.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All scheduled commercial banks, Exim Bank, NABARD, NHB, SIDBI

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Which AIFIs are covered under this circular?

The circular applies to Exim Bank, NABARD, NHB, and SIDBI.

What is the effective date of these guidelines?

The circular was issued on August 5, 2009, and applies from that date.

Do these guidelines change existing consortium norms for banks?

No, the same norms that already apply to banks are now extended to AIFIs; banks' obligations remain unchanged.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1843: DBOD.No.FID.FIC.5/01.02.00/2009-10 — "Lending under Consortium Arrangements / Multiple Banking Arrangements" dated August 5, 2009”
📜 Read the original circular — full text as issued by RBI
RBI/2009-2010/116  DBOD.No.FID.FIC.5/01.02.00/2009-10 August 5, 2009 The CEOs of the Select  All-India Term-lending and Refinancing Institutions (Exim Bank, NABARD, NHB and SIDBI) Dear Sir, Lending under Consortium Arrangements/Multiple Banking Arrangements Please find enclosed Circular DBOD.No.BP.BC.46/08.12.001/2008-09 dated September 19, 2008 on the above subject along with subsequent circulars DBOD.No.BP.BC.94/ 08.12.001/2008-09 dated December 08, 2008 and DBOD No. BP. BC. 110 / 08. 12. 001 /2008-09 dated February 10, 2009 respectively and DBS.CO.FrMC.BC.No.8/23.04.001/2008-09 dated June 24, 2009. It is advised that the above guidelines on consortium arrangements/multiple banking arrangements  issued to banks, shall mutatis mutandis apply to the select all-India Financial Institutions (AIFIs) for sharing of  information among the AIFIs and with banks. Yours faithfully, (Vinay Baijal) Chief General Manager Encls : As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-2010/116 · issued 05 Aug 2009. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5205&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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