RBI master-direction RBI/DOR/2025-26/329 · 28 Nov 2025
Official title
Reserve Bank of India (All India Financial Institutions – Classification, Valuation and Operation of Investment Portfolio) Directions, 2025
Summary
Check the official recordThe Reserve Bank of India issues these Directions to govern the investment portfolio operations of All India Financial Institutions (AIFIs). AIFIs must classify their entire investment portfolio into Held to Maturity (HTM), Available for Sale (AFS), or Held for Trading (HFT) categories. The Board of Directors must approve an Investment Policy and establish an Investment Committee to manage investment decisions and risks. AIFIs must maintain robust internal controls, conduct half-yearly portfolio reviews, and adhere to specific valuation and provisioning norms for each category. These Directions replace previous guidelines for AIFIs. AIFIs must comply with these requirements immediately upon the date of issue.
What you must do
Key dates
Who is affected
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If you do not comply
RBI/DOR/2025-26/329 DOR.MRG.REC.No.248/00-00-017/2025-26 November 28, 2025
Reserve Bank of India (All India Financial Institutions – Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025
In exercise of the powers conferred by Section 45L of the Reserve Bank of India Act, 1934, and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, the RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Directions hereinafter specified.
(1) ‘Available for Sale’ means the category of investment portfolio of an AIFI which includes investment that do not fall within the HTM (Held To Maturity) or HFT (Held For Trading) category.
(2) ‘Corporate Bonds / Debentures’ for the purpose of these Directions mean debt securities which create or acknowledge indebtedness, including debentures, bonds, commercial papers, certificate of deposits and such other securities of a company, a multilateral financial institution or a body corporate constituted by or under a Central Act or a State Act, whether constituting a charge on the assets of the company or body corporate or not, and includes convertible instruments and instruments of a perpetual nature, but does not include debt securities issued by Central Government or a State Government, or such other persons as may be specified by the Reserve Bank, security receipts, and securitised debt instruments.
(3) ‘Current or Valid Credit Rating’ means a credit rating granted by a credit rating agency in India, registered with SEBI and fulfilling the following conditions: i. The credit rating letter shall not be more than one month old on the date of opening of the issue; ii. The rating rationale shall not be more than one year old on the date of opening of the issue; iii. The credit rating letter and the rating rationale shall preferably be part of the offer document; and iv. In the case of secondary market acquisition, the credit rating of the issue shall be in force and confirmed from the website of the respective rating agency.
(4) ‘Derivative’ shall have the same meaning as assigned to it in Section 45U(a) of the Reserve Bank of India Act, 1934, as amended from time to time.
(5) ‘Exchange’ means ‘Recognized stock exchange’ and shall have the same meaning as defined in Section 2 (f) of Securities Contracts (Regulation) Act, 1956, as amended from time to time.
(6) ‘Government Security’ shall have the same meaning as assigned to it in Section 2(f) of the Government Securities Act, 2006, as amended from time to time.
(7) ‘Held For Trading’ means the category of investment portfolio maintained by an AIFI with the intention to trade in securities by taking advantage of short-term price / interest rate movements.
(8) ‘Held To Maturity’ means the category of investment portfolio maintained by an AIFI with an intention to hold securities upto maturity.
(9) ‘Listed Security’ is a security, which is listed on an exchange.
(10) ‘Quoted Security’ is a security for which market prices are available at stock exchanges / reporting platforms / trading platforms, authorised by the Reserve Bank / Securities and Exchange Board of India (SEBI).
(11) ‘Rated Security’ means a security which is subjected to a detailed credit rating exercise by a SEBI - registered credit rating agency and shall carry current or valid credit rating.
(12) ‘Reconstitution’ shall have the same meaning as defined in the notification IDMD.1762/2009-10 dated October 16, 2009 , on ‘Government Securities - Separate Trading of Registered Interest and Principal of Securities (STRIPS)’.
(13) ‘Repo’ and ‘Reverse Repo’ shall have the same meaning as defined in Section 45U of the Reserve Bank of India Act, 1934 (‘RBI Act’), as amended from time to time. For the purpose of these Directions, the word ‘repo’ is used to mean both ‘repo’ and ‘reverse repo’ with the appropriate meaning applied contextually.
(14) ‘Securities’ shall have the same meaning as defined in Section 2(h) of Securities Contracts (Regulation) Act, 1956, as amended from time to time.
(15) ‘Securitisation’ shall have the same meaning as defined in Reserve Bank of India (All India Financial Institutions – Securitisation Transactions) Directions, 2025 .
(16) ‘Securitisation Exposures’ shall have the same meaning as defined in Reserve Bank of India (All India Financial Institutions – Securitisation Transactions) Directions, 2025 .
(17) ‘Securitised Debt Instrument’ means securities of the nature referred to in Section 2(h)(ie) of the Securities Contracts (Regulation) Act, 1956, as amended from time to time.
(18) ‘Security Receipts’ shall have the same meaning as defined in Section 2(1)(zg) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, as amended from time to time.
(19) ‘Stripping’ shall have the same meaning as defined in the notification IDMD.1762/2009-10 dated October 16, 2009 , on ‘Government Securities - Separate Trading of Registered Interest and Principal of Securities (STRIPS)’.
(20) ‘Unrated Securities’ means securities, which do not have a current or valid credit rating by a SEBI-registered credit rating agency.
(21) ‘When, as and if issued’ (commonly known as ‘when-issued’ (WI)) security means a security as referred to in When Issued Transactions (Reserve Bank) Directions, 2018 issued vide FMRD.DIRD.03/14.03.007/2018-19 dated July 24, 2018 .
