According to the RBI directives no RE can individually contribute more than 10 per cent of the corpus of an AIF Scheme
The Reserve Bank of India (RBI) has decided to enlist SWAMIH (Special Window for Affordable and Mid-Income Housing) Investment Fund-I under the specified exemption category when it comes to investments by regulated entities (REs). This is expected to attract inflows into the fund from REs such as banks.
So, investments made by REs in SWAMIH will not be subject to limits on investments and provisioning under the Reserve Bank of India (Investment in AIF) Directions, 2025.
SWAMIH was announced on November 6, 2019. This ‘Special Window’, in the form of AIF, provides priority debt financing for completion of stalled housing projects. SBI Ventures has been assigned the role of investment manager for this special window.
The fund has achieved its first close with capital commitment of ₹10,037.5 crore and its final close with capital commitment of ₹15,530 crore on December 6, 2022.
Limits on Investments and Provisioning
In the case of investment by REs in other AIFs, RBI has prescribed limits on investments and provisioning.
According to the Reserve Bank of India (Investment in AIF) Directions, 2025, no RE can individually contribute more than 10 per cent of the corpus of an AIF Scheme.
Collective contribution by all REs in any AIF Scheme cannot be more than 20 per cent of the corpus of that scheme.
If an RE contributes more than five per cent of the corpus of an AIF Scheme, which also has downstream investment (excluding equity instruments) in a debtor company of the RE, then the RE is required to make 100 per cent provision to the extent of its proportionate investment in the debtor company through the AIF Scheme.
The aforementioned clause is subject to a maximum of the direct loan and/or investment exposure of the RE to the debtor company.
If an RE’s contribution is in the form of subordinated units, then it has to deduct the entire investment from its capital funds – proportionately from both Tier-1 and Tier-2 capital (wherever applicable).
Published on October 24, 2025
