The Reserve Bank of India (RBI) has decided to exempt the government-backed SWAMIH Fund from its recently tightened regulations for Alternate Investment Funds (AIFs), ensuring continued support for stalled housing projects.
About the SWAMIH Fund
- Establishment: The SWAMIH Fund was launched in 2019 by the Ministry of Finance to revive stalled real estate projects and provide last-mile funding for affordable and mid-income housing.
- Management: It is managed by SBICAP Ventures Ltd, a subsidiary of the State Bank of India.
- Fund Type: The Fund is registered as a Category-II AIF (debt fund) under the Securities and Exchange Board of India (SEBI).
- Purpose: Acts as the lender of last resort for financially stressed but viable real estate projects, enabling homebuyers to receive delayed flats and boosting sector confidence.
Eligibility Criteria
- The project must be registered under RERA (2016).
- It should be stalled, delayed, or classified as a Non-Performing Asset (NPA) or under insolvency proceedings.
- Funding is restricted to affordable and mid-income housing segments.
Significance
- Helps revive housing demand, restore investor trust, and ensure timely delivery to homebuyers.
- Supports the government’s vision of “Housing for All” while stabilising the real estate sector.
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