Lenders retain AIF holdings even as Reserve Bank of India deadline nears

Industry is awaiting certain relaxations or extensions based on their recommendations

Alternative investment funds (AIFs) have not seen any significant redemptions from financial institutions even though the 30-day timeline provided by the Reserve Bank of India (RBI) to liquidate their holdings or make full provisions ends this week. 

Sources said the industry is awaiting certain relaxations or extensions based on the recommendations submitted to the banking regulator. 

On December 19, the RBI restricted financial institutions and banks from investing in AIFs where there is any downstream link or exposure to a debtor firm. It meant that if a bank or a non-banking financial company (NBFC) has lent to a