RBI eases norms for IDF-NBFCs
The Reserve Bank of India on Thursday widened the scope of financing of infrastructure debt funds to ensure flow of credit to the infrastructure projects.
An IDF-NBFCs exposure to an individual project has been capped at 50% of its total capital funds Tier I plus Tier II as defined in systemically important non-banking financial companies prudential norms. These funds can take an additional exposure up to 10% with board approval.
``RBI may, upon receipt of an application from an IDF-NBFC and on being satisfied that the financial position of the IDF-NBFC is satisfactory, permit additional exposure up to 15 per cent (over 60 per cent) subject to such conditions as it may deem fit to impose regarding additional prudential safeguards,’’ said the RBI in its notification.
IDFC-NBFC would have to assign a risk weight of 50% on all assets covering PPP and post COD infrastructure projects in existence over a year of commercial operation.