HomeCirculars › RBI/2010-11/385

RBI extends MFI credit support norms to AIFIs

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/385 · issued 25 Jan 2011 · ~1 min read
Quick answerRBI has extended its prudential guidelines on restructuring advances to cover select AIFIs, applying the same credit support framework for MFIs that was issued to scheduled commercial banks in January 2011.

What changed

RBI directed select All-India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI) to apply the January 19, 2011 circular on credit support to MFIs mutatis mutandis. However, provisions related to activities not typically undertaken by these FIs—like working capital, overdrafts, and personal loans—are excluded from applicability.

What it means for you

AIFIs must now follow the same restructuring norms for MFI advances as commercial banks, ensuring uniform treatment across lenders. This aligns regulatory expectations for credit support to the microfinance sector, though AIFIs are exempt from rules covering products they don't offer.

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 handling MFI advances

❓ 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 Exim Bank, NABARD, NHB, and SIDBI, as specified in the address list.

Are all provisions of the commercial bank circular applicable to AIFIs?

No. Provisions related to activities not generally undertaken by FIs—such as working capital, overdrafts, and personal loans—are not applicable.

What is the effective date of these guidelines?

The circular is dated January 25, 2011, and applies the guidelines from the referenced January 19, 2011 circular to AIFIs.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1554: DBOD.FID.FIC.No.10/01.02.00/2010-11 — "Prudential Guidelines on Restructuring of Advances by select All-India Financial Institutions (AIFIs) : Credit Support ”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/385 DBOD.FID.FIC.No.10 /01.02.00/2010-11 January 25, 2011 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): Credit Support to MFIs In continuation of our letter DBOD.No.FID.FIC.6 /01.02.00/2010-11 dated October 14, 2010 on the captioned subject, please find enclosed   DBOD.BP.BC.No. 74 /21.04.132/2010-11 dated January 19, 2011 on `Credit Support to Micro Finance Institutions ( MFIs) ' 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/2010-11/385 · issued 25 Jan 2011. 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=6235&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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