HomeCirculars › RBI/2010-11/258

Off-Balance Sheet Netting Norms Extended to AIFIs

Live · in forceNo withdrawal recorded as of 20 Jun 2026. Reviewed by Vikram Jain; always verify against the official RBI source below.
Issued by RBI: FY 2010-11  ·  Decoded by BankPulse: 20 Jun 2026, 12:12 IST
⏱ ~1 min read
📄 Official RBI source ↗
Quick answerRBI extends bilateral netting guidelines for counterparty credit exposures to select All-India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI), effective immediately, aligning them with bank norms.

What changed

RBI circular DBOD.FID.FIC.No 8/01.02.00/2010-11 dated November 2, 2010, advises that prudential norms for off-balance sheet exposure and bilateral netting of counterparty credit exposures, originally issued to banks on October 1, 2010, now apply mutatis mutandis to select AIFIs. This extends the same regulatory framework to Exim Bank, NABARD, NHB, and SIDBI.

What it means for you

AIFIs must now follow the same prudential norms as banks for netting counterparty credit exposures in off-balance sheet items, impacting their capital adequacy calculations. This ensures consistency in risk management across financial institutions and may require adjustments in their reporting and compliance systems.

What you must do

Who it affects

Exim Bank, NABARD, NHB, SIDBI, Risk management teams at AIFIs, Compliance departments at AIFIs

What is bilateral netting of counterparty credit exposures?

It allows institutions to offset positive and negative replacement costs with the same counterparty to calculate a single net exposure, reducing capital requirements.

When do these norms take effect for AIFIs?

The circular is dated November 2, 2010, and applies immediately from that date, as it references the bank circular issued on October 1, 2010.

Which AIFIs are covered by this circular?

The circular is addressed to select All-India Term Lending and Refinancing Institutions: Exim Bank, NABARD, NHB, and SIDBI.

Track this rule
⏳ How this rule evolved — History Map →Full RBI rulebook crosswalk →
AI-drafted · 3-model AI consensus fact-check · under the editorial review of Vikram Jain · decoded & published by BankPulse · 20 Jun 2026, 12:12 IST
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6076&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by Vikram Jain. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.