HomeCirculars › RBI/2010-11/234

RBI Extends Restructuring Norms to AIFIs

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/234 · issued 14 Oct 2010 · ~1 min read
Quick answerRBI has extended its prudential guidelines on restructuring of advances to select AIFIs (Exim Bank, NABARD, NHB, SIDBI), effective October 14, 2010, with exceptions for activities not undertaken by them like working capital and personal loans.

What changed

RBI issued a circular extending the prudential guidelines on restructuring of advances, originally applicable to scheduled commercial banks, to select All-India Financial Institutions (AIFIs). The guidelines apply mutatis mutandis, meaning with necessary modifications, to these institutions. Provisions related to activities not typically undertaken by AIFIs, such as working capital, overdrafts, and personal loans, are excluded from applicability.

What it means for you

AIFIs like Exim Bank, NABARD, NHB, and SIDBI must now follow the same restructuring norms as banks, ensuring uniformity in handling stressed advances. This aligns their prudential practices with the banking sector, reducing regulatory arbitrage. However, they are exempt from rules on products they don't offer, avoiding unnecessary compliance burden.

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

Exim Bank, NABARD, NHB, SIDBI, All-India Financial Institutions (AIFIs)

❓ 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 by this circular?

The circular applies to select All-India Term Lending and Refinancing Institutions: Exim Bank, NABARD, NHB, and SIDBI.

Are there any exemptions from these restructuring guidelines?

Yes, provisions related to activities not generally undertaken by AIFIs, such as working capital, overdrafts, and personal loans, are not applicable.

What is the effective date of these guidelines?

The circular was issued on October 14, 2010, and is effective from that date.

📜 This document’s life story (3 recorded events, each backed by RBI’s own words)
Extended by RBI Extends Restructuring Guidelines to FIs
RBI’s words: “In continuation of our letter DBOD.FID.FIC.No.6/01.02.00/2010-11 dated October 14, 2010”
Extended by RBI extends MFI credit support norms to AIFIs
RBI’s words: “In continuation of our letter DBOD.No.FID.FIC.6 /01.02.00/2010-11 dated October 14, 2010”
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1603: DBOD.FID.FIC.No.6/01.02.00/2010-11 — "Prudential Guidelines on Restructuring of Advances by Select All-India Financial Institutions (AIFIs)" dated October 14,”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/234 DBOD.FID.FIC.No.6 /01.02.00 /2010-11 October 14, 2010 The CEOs of select All-India Term Lending and Refinancing Institutions (Exim Bank, NABARD, NHB and SIDBI) Dear Sir, Prudential Guidelines on Restructuring of Advances by select All-India Financial Institutions (AIFIs) In continuation of our letter DBOD.No.FID.FIC.5 /01.02.00/2008-09 dated February 26, 2009 on the captioned subject, please find enclosed Circular DBOD No.BP.No. 49/ 21.04.132/2010-11 dated October 7, 2010 on `Prudential Guidelines on Restructuring of Advances by Banks' issued to scheduled commercial banks. In this connection, it is advised that these guidelines, shall apply mutatis mutandis to the select All-India Financial Institutions (AIFIs). 2. However, certain activities are generally not undertaken by FIs, such as extending working capital, overdrafts and personal loans, etc. The provision of the circular relating to such activities shall not be applicable to the AIFIs. Please acknowledge receipt. Yours faithfully, (Vinay Baijal) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/234 · issued 14 Oct 2010. 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=6042&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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