(vi) every Non-Banking Finance Company - Infrastructure Finance Company (NBFC- IFC) registered with the Bank under the provisions of RBI Act, 1934 and having an asset size of ₹ 500 crore and above. All Rights Reserved. Depending on their performance, the subsidy will be paid on a half yearly basis, the RBI says. “Infrastructure companies couldn’t have asked for anything better at his point," said Subba Rao Amarthulu, group chief financial officer at RPG Enterprises. What constitutes ‘credit facility’ under the definition of infrastructure loan? Ans: Infrastructure Finance Companies can maintain risk weight at 50% for assets covering PPP and post commercial operations date (COD) projects which have completed at least one year of satisfactory commercial operations and which are backed by a buyback guarantee by a designated Project / Statutory authority under a Tripartite Agreement. The guidelines will be technology and platform agnostic, the RBI said. Annex II - Guidelines on Liquidity Risk Management Framework ... (vi) every Non-Banking Finance Company - Infrastructure Finance Company (NBFC-IFC) registered with the Bank under the provisions of RBI Act, 1934 and having an asset size of ₹ 500 crore and above. The funds will be collected January 31, 2021. The COVID-19 pandemic shut businesses and restricted people from normal activity for several months in 2020. Your email address will not be published. 5 DBOD-MC-Housing Finance - 2014 2. What is an Infrastructure finance? NEW DELHI: The Reserve Bank of India's revised regulatory framework for the housing finance companies will help them improve risk management and governance and thus become financially sound to withstand market turbulence, according to experts. The stock of Srei Infrastructure Finance Ltd (SIFL) took a beating on the bourses in Monday’s trade in the backdrop of the Reserve Bank of India (RBI) engaging an … (Mint file) RBI to issue revised norms for housing finance companies 1 min read. This definition is used in order to provide tax breaks or subsidies that have been promised to the infrastructure sector. Kanungo, a deputy governor, to manage the fund. Infrastructure Development Finance Company Limited, more commonly known as IDFC, is a finance company based in India. The Apex Bank directed HFCs to lend at least 60% of their net assets to housing through the final RBI guidelines issued on 22 October, which is a follow-up to a drafted issued in June 2020. The financing of projects or companies involved in these sectors is called infrastructure financing. b. Acquirers who meet or exceed their targets, whether in terms of deployment time or greater utilisation of devices, will be “incentivised while those who do not achieve their targets shall be disincentivised,” the RBI says. In order to encourage lending by banks to the infrastructure sector, banks are permitted to finance SPVs registered under the Companies Act, set up for financing infrastructure projects, after ensuring that these Ans “Infrastructure loan” means a credit facility extended by NBFCs to a borrower for exposure in the following infrastructure sub-sectors: 1. To encourage infrastructure financing, RBI today eased norms for NBFCs to refinance such projects and provide longer repayment tenures. SREI Infrastructure Finance slumped 14.61% to Rs 5.73 after the Reserve Bank of India (RBI) initiated a special audit of the company and its subsidiary. The minimum credit rating of the company should be at 'A' or equivalent of CRISIL, FITCH, CARE, ICRA, BRICKWORK or equivalent rating by any other accrediting rating agencies. Maximum cost of physical acceptance device to avail subsidy: ₹10,000 (including one-time operating cost upto ₹500), Maximum cost of digital acceptance device to avail subsidy: ₹ 300 (including one-time operating cost upto ₹200), AC should introduce a ‘minimum usage’ criteria set 50 transactions over a period of 90 days, Active status shall be minimum usage for 10 days over the 90-day period, 75% of the subsidy amount will be released on a half-yearly basis, 25% of the balance will be released if the acceptance device is active for 3 out of the 4 quarters of the ensuing year, The claim should be submitted only after making payment to the vendor, Acquiring players cannot claim the subsidy under the PIDF, if it is receiving a subsidy under other merchanisms for deploying payments infrastructure, If less than 75% of the target is achieved or utilised, the acquirer can only seek 90% of eligible subsidy, If 75% to 125% of the target is achieved or utilised, the acquirer can claim 100% of eligible subsidy, If more than 125% of the target is achieved or utilised, the acquirer can only seek 110% of eligible subsidy. 6. The PIDF will operational for three years from January 1, 2021, which can be extended by two years if necessary. Deepa Mehta ‘disappointed’ Netflix India won’t be streaming Funny Boy, US Trade Representative publishes report blasting India’s 2% Equalisation Levy, MEITY considering reimbursing payment companies for UPI: Report, Twitter, Facebook, Instagram temporarily suspend Donald Trump’s account, Traders’ body wants 5% tax on e-commerce players. RBI FAQS on Infrastructure Finance Companies (IFCs) TG Team | Fema / RBI - Articles; 20 Mar 2016; 1,627 Views; 0 comment; Infrastructure Finance Companies (IFCs) Q.1. b. ten percent of its owned fund to a single group of parties, (i.e. But in the wake of the lockdown, digital... MediaNama is the premier source of information and analysis on Technology Policy in India. For several months in 2020 2018 10:44 PM 1 min read Institutes and Diagnostics Centres of! 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