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Directions · Reserve Bank of India

Reserve Bank of India (All India Financial Institutions– Resource Raising Norms) Directions, 2025

UR

The four dates on this rule

At a glanceThe Overall Borrowing Limit was dropped when the Leverage Ratio began on April 1, 2024. These rules cover the RBI-regulated All India Financial Institutions, starting with EXIM Bank and NABARD. The rules start the day RBI puts them on its own website.

Official RBI page

What it says

Chapter I. Preliminary

1. Starts once posted online

The rules start the day RBI puts them on its own website.

2. Covers EXIM Bank and NABARD

These rules cover the RBI-regulated All India Financial Institutions, starting with EXIM Bank and NABARD.

3. Also covers NaBFID, NHB, SIDBI

The list also names NaBFID, the National Housing Bank and SIDBI.

Chapter II. Resource Raising Norms

Must know

1. The umbrella limit continues

The Umbrella Limit itself still binds every AIFI, even though the old ceiling is gone.

2. Borrowings capped at own funds

Total borrowings under the Umbrella Limit may never exceed 100 per cent of the AIFI's own funds.

BankPulse example. An AIFI's own funds are Rs 2,000 crore. Its Umbrella Limit borrowings may not cross Rs 2,000 crore, 100 per cent of that.

3. Four instruments make the limit

The Umbrella Limit is built from term deposits, term money, certificates of deposit and commercial paper.

4. Brokerage limit, one per cent

Brokerage on a term deposit may never exceed one per cent of the amount taken in.

BankPulse example. TDs raised in a quarter total Rs 50 crore. Brokerage on them may not cross Rs 50 lakh, one per cent of that.

5. TDs must carry a rating

Every term deposit must carry a rating from a SEBI-approved credit rating agency.

6. No loans against own deposits

An AIFI may not lend against its own term deposits without RBI's permission.

7. Term money, banks only

Term money may be borrowed only from scheduled commercial banks and co-operative banks.

8. Primary issuance reported by evening

Details of a new certificate of deposit must reach the trade repository by 5:30 PM that day.

9. Reported within 15 minutes

A secondary market trade in a certificate of deposit must be reported within 15 minutes of execution.

10. Bonds need no RBI approval

An AIFI may raise resources through bonds without needing RBI's prior approval.

11. Bonds, no early exit

A bond may not carry any call, put or exit option before one year from issue.

Do it

12. Deposits, one to five years

A term deposit must run for at least one year and no more than five years.

13. Minimum deposit, ten thousand

Each term deposit must be for at least ₹10,000.

14. No exit before a year

A term deposit may not be withdrawn early before it completes one year.

15. Term money, three to six

Term money borrowing must run for at least three months and no more than six.

16. Certificates issued electronically only

A certificate of deposit must be issued only in electronic, dematerialised form.

17. Five lakh minimum, in steps

A certificate of deposit starts at ₹5 lakh and rises only in steps of ₹5 lakh.

BankPulse example. An AIFI planning Rs 47 lakh through one certificate finds a problem: Rs 47 lakh is not a multiple of Rs 5 lakh. The nearest multiples are Rs 45 lakh and Rs 50 lakh.

18. One to three years

A certificate of deposit must run for at least a year and no more than three.

19. Bonds, three-year minimum

A bond issued under this book must have a minimum maturity of three years.

Background

20. The old limit is gone

The Overall Borrowing Limit was dropped when the Leverage Ratio began on April 1, 2024.

Chapter III. Repeal and Other Provisions

1. Old resource-raising rules are gone

All earlier RBI rules on resource raising for these institutions now stand repealed.

2. Past actions still stand

Anything done under the old rules stays governed by those old rules.

3. This adds to other law

These rules sit on top of other laws, and take nothing away from them.

Where to go next