According to the RBI advisory, banks, non-banking

Solution

In the middle of concerns about the circumvention of regulations by alternative investment funds (AIFs), the Reserve Bank of India (RBI) issued an advisory to banks and financial companies to curb the evergreening of loans and misuse of the AIF route.According to the RBI advisory, banks, non-banking financial companies (NBFCs), and other financial institutions like the National Bank for Agriculture and Rural Development and the Small Industries Development Bank of India (Sidbi) will not be able to make investments in any scheme of AIFs that has downstream investments directly or indirectly in a debtor company of the bank/NBFC. This implies that if the bank or NBFC currently has exposure or had previously lent at any time during the preceding 12 months to a company, they cannot invest in an AIF scheme investing in the same company.