RBI’s Revised Guidelines for IDF-NBFCs to Boost Infrastructure Financing

RBI’s Revised Guidelines for IDF-NBFCs to Boost Infrastructure Financing

• The Reserve Bank of India (RBI) has recently introduced updated guidelines for Infrastructure Debt Fund-Non-Banking Financial Companies (IDF-NBFCs). These revisions aim to enhance the role of IDF-NBFCs in financing the infrastructure sector and to align the regulations governing infrastructure sector financing by Non-Banking Financial Companies (NBFCs). The review of these guidelines has been carried out in collaboration with the Government of India.
• Under the new guidelines, IDF-NBFCs are mandated to maintain a minimum Net Owned Fund (NOF) of Rs 300 crore. This measure ensures that these entities possess adequate financial strength to engage significantly in infrastructure financing.
• The revised norms stipulate a Capital-to-Risk Weighted Assets Ratio (CRAR) of at least 15%, with a minimum Tier 1 capital of 10%. This capital adequacy requirement safeguards the financial stability of IDF-NBFCs as they channel funds into infrastructure projects.

Also Read: Weekly Current Affairs (Important Dates) 15-21 July 2023 Bitbank: On which date is International Moon Day 2023 celebrated?

                         >> Download Current Affairs PDFs Here

                              Download Sakshi Education Mobile APP

Published date : 23 Aug 2023 02:52PM