HomeCirculars › RBI/2010-11/296

VCF Investment Norms Extended to AIFIs

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/296 · issued 01 Dec 2010 · ~1 min read
Quick answerRBI extended prudential guidelines on venture capital fund investments, originally issued for banks in 2006, to select All-India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI) with immediate effect.

What changed

RBI circular DBOD.FID.FIC.No 9/01.02.00/2010-11 dated December 1, 2010, advised that the prudential guidelines on investment in venture capital funds (VCFs) issued to banks via circular DBOD No. BP.BC.27/21.01.002/2006-2007 dated August 23, 2006, shall apply mutatis mutandis to select All-India Financial Institutions (AIFIs). The AIFIs covered are Exim Bank, NABARD, NHB, and SIDBI.

What it means for you

AIFIs must now follow the same VCF investment norms as banks, including exposure limits, capital adequacy treatment, and risk management requirements. This harmonizes the regulatory framework across financial institutions and ensures consistent prudential oversight for venture capital exposures.

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 institutions are covered by this circular?

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

What guidelines are being extended?

The prudential guidelines on investment in venture capital funds (VCFs) originally issued to banks on August 23, 2006, are now applicable mutatis mutandis to the specified AIFIs.

When does this circular take effect?

The circular is dated December 1, 2010, and is effective immediately from that date.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1583: DBOD.FID.FIC.No.9/01.02.00/2010-11 — "Prudential Guidelines - Investment in Venture Capital Funds (VCFs)" dated December 1, 2010”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/296 DBOD.FID.FIC.No  9/01.02.00/2010-11 December 1, 2010 The CEOs of select All-India Term Lending and Refinancing Institutions (Exim Bank, NABARD, NHB and SIDBI) Dear Sir, Prudential Guidelines-Investment in Venture Capital Funds (VCFs) Please find enclosed circular DBOD No. BP .BC.27/21.01.002/2006-2007 dated August 23, 2006 on the above subject. In this connection, it is advised that the above guidelines issued to banks, shall mutatis mutandis apply to the select All-India Financial Institutions (AIFIs). Yours faithfully, (Vinay Baijal) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/296 · issued 01 Dec 2010. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6126&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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