It provides finance and advisory services for infrastructure projects as well as asset management and investment banking. 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. Annex V - Guidelines for Licensing of New Banks in the Private Sector Definitions Annex VI - Norms on Restructuring of Advances by NBFC Annex VII - Flexible Structuring of Long Term Project Loans to Infrastructure and Core Industries Annex VIII - Ombudsman Scheme for Non-Banking Financial Companies, 2018 - Nodal Officer/Principal Nodal Officer “NBFCs may refinance any existing infrastructure … However, this definition is more for the government’s internal operations. Education Institutions (capital stock). The aim of the fund is to add 1 million physical payment acceptance devices and 2 million digital payments devices every year, the RBI says. A lender who has extended only working capital finance for a project may be treated as 'new lender' for taking over a part of the project term loan as required under the guidelines. This definition is used in order to provide tax breaks or subsidies that have been promised to the infrastructure sector. The funds will be collected January 31, 2021. Ans : IFCs may exceed the concentration of credit norms as provided in paragraph 18 of the aforesaid Directions as under: a. any single borrower by ten per cent of its owned fund, (i.e at 25% of Owned Funds) and, b. any single group of borrowers by fifteen per cent of its owned fund, (i.e. Includes Medical Colleges, Para Medical Training Institutes and Diagnostics Centres. Investment in shares of another company cannot exceed 15% of its Owned Funds. 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. Kanungo, a deputy governor, to manage the fund. The financing of projects or companies involved in these sectors is called infrastructure financing. 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. Should Amazon, Flipkart Show Country Of Origin Of Products? Updated: 18 Jun 2020, 12:09 AM IST Gopika Gopakumar. The final guidelines follow a draft issued in June this year and seek to harmonise regulations between non-bank lenders and housing financiers. Payments infrastructure incurs a cost for all players in the chain, from banks, non-bank players like fintechs and wallet players to Point-of-Sale (PoS) device manufacturers. RBI’s proposals clearly define home finance firms. The Reserve Bank of India (RBI) has introduced guidelines for the Payments Infrastructure Development Fund (PIDF) scheme, which will subsidise the deployment of … “Infrastructure companies couldn’t have asked for anything better at his point," said Subba Rao Amarthulu, group chief financial officer at RPG Enterprises. b. 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. What is an Infrastructure finance? NBFC-Systemically Important Core Investment Company (CIC-ND-SI) Investment in equity shares, preference shares, debt or loans of group companies. The Reserve Bank of India has issued a revised set of guidelines for housing finance companies after it took over regulation of these lenders last year. RBI guidelines on risk-weightage of NBFCs: Better credit flow, lower cost of funds among key benefits . The fund has a corpus of Rs 345 crore, of which Rs 250 crore was contributed by RBI and Rs 95 crore by authorized card networks operating in India. Currently, the Reserve Bank has classified NBFCs under three categories, viz., Asset Finance Companies, Loan companies and Investment Companies. Yours faithfully (C.D. About dividend distribution policy by NBFCs, the RBI said unlike banks, there are no guidelines for distribution of dividend by NBFCs. Ans: The term ‘credit facility’ means a term loan, project loan subscription to bonds/ debentures/ preference shares/ equity shares in a project company acquired as a part of project finance package such that such subscription amounts to be “in the nature of advance” or any other form of long term funded facility provided to a borrower company engaged in developing/ operating and maintaining/ developing, operating and maintaining infrastructure facilities, that is a project in any of the sub-sectors as specified in the definition of infrastructure loan. Ans “Infrastructure loan” means a credit facility extended by NBFCs to a borrower for exposure in the following infrastructure sub-sectors: Sl.No. The Reserve Bank of India (RBI) on Friday released revised priority sector lending (PSL) guidelines to augment funding for COVID-19 impacted companies.. Also … Save my name, email, and website in this browser for the next time I comment. 3. Risk Weights for … RBI's move will bolster India's rural economy, open wide a new user base for fintech companies, as well as enable more commerce in Tier III and lower areas. 21 November 2011. Guidelines for Licensing of “Payments Banks” November 27, 2014 I. Preamble The Reserve Bank of India (RBI) issues licences to entities to carry on the business of banking and other businesses in which banking companies may engage, as defined and described in Sections 5 (b) and 6 (1) (a) to (o) of the Banking Regulation Act, 1949, respectively. RBI said that Qualifying Assets refer to ‘housing finance’ or ‘providing finance for housing’ as per the definition, and not be lower than 50 percent of net assets should be in the nature of ‘qualifying assets’ for HFCs, of which at least 75 percent should be towards housing loans in individual category. Here is everything you need to know about the new RBI guidelines on loan moratorium and what your current options are as a borrower. What is the risk weight IFCs have to maintain on assets covering PPP and which have completed one year of commercial production? The Reserve Bank of India (RBI) is conducting a special audit of Kolkata-based lender Srei Infrastructure Finance and its subsidiary, Srei Equipment Finance. What constitutes ‘credit facility’ under the definition of infrastructure loan? The AC will create the rules for acquiring players to claim a subsidy depending on their capital expenditure, type of device, deployment location and other criteria. What are the credit concentration norms for IFCs? As the Reserve Bank of India is conducting a special audit in Srei Infrastructure Finance … RBI issues guidelines for banks sponsoring infrastructure debt funds. Company dealing with Infrastructure Finance. Going forward, issuing banks will have to pay the same rate for every new debit and credit card they issue, respectively, during the year. The Reserve Bank of India … RBI said that under extant guidelines on Basel III Capital Regulations, exposures/claims of banks on rated as well as unrated Non-deposit Taking Systemically Important Non-Banking Financial Companies (NBFC-ND-SIs), other than Asset Finance Companies (AFCs), Non-Banking Financial Companies – Infrastructure Finance Companies (NBFCs-IFC) and Non-Banking Financial Companies – Infrastructure … MUMBAI: The RBI on Tuesday permitted startups, banks and financial institutions to set up regulatory sandbox (RS) for live testing of innovative products in areas like retail payments, digital KYC and wealth management. Ans “Infrastructure loan” means a credit facility extended by NBFCs to a borrower for exposure in the following infrastructure sub-sectors: 1. It is headed by BP Kanungo, Deputy Governor of the RBI and includes: The RBI says banks should target merchants who are yet to posses any payments acceptance device funds and that the AC will have to devise a transparent mechanism for allocating targets to acquiring banks and non-bank players across segments and locations. Infrastructure Debt Fund-NBFC (IDF-NBFC) Facilitation of flow of long-term debt into infrastructure projects. Infrastructure Finance Company (IFC): IFC is a non-banking finance company a) which deploys at least 75 per cent of its total assets in infrastructure loans, b) has a minimum Net Owned Funds of ₹ 300 crore, c) has a minimum credit rating of ‘A ‘or equivalent d) and a CRAR of 15%. 2.2 Banks are free to evolve their own guidelines with the approval of their Boards on aspects such as security, margin, age of dwelling units, repayment schedule, etc. a. 2. Made in India. It has provided a matrix in terms of where banks and other merchant acquirers need to deploy payments’ infrastructure, with the focus on deploying payments infrastructure in Tier-5 and Tier-6 centres. More about MediaNama, and contact information, here. What is an IFC and what are the eligibility or entry point norms for registration of an IFC-NBFC with RBI? Company history. ETBFSI; January 06, 2021, 11:51 IST (Photo: Mint) RBI proposes new rules for housing finance companies 2 min read. NBFC-Infrastructure Finance Company (NBFC-IFC) Provision of infrastructure loans. at 50% of Owned funds). 2. (Photo: Mint) RBI proposes new rules for housing finance companies 2 min read. 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