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. Required fields are marked *. 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. Company dealing with Infrastructure Finance. i. While the fund will have a corpus of ₹345 crore from the get-go, the RBI has introduced a fee that card networks and card-issuing banks will have to pay based on their annual turnover. Q.5. Exposure to other assets shall be governed by the extant regulations applicable to Infrastructure Finance Companies as given in Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015. 2. The RBI, which has taken over the regulation of HFCs about a year ago, has come up with a revised regulatory framework for the HFCs. NIIF Infrastructure Finance Limited was incorporated as an Infrastructure Debt Fund (IDF) on March 7, 2014 for financing operating infrastructure projects and carry on the business of IDF under NBFC Format as per RBI Guidelines. 4. 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. . What are the credit concentration norms for IFCs? Srinivasan) Chief General Manager 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. Best viewed in 1024x768 resolution in IE 5 and above. 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. Developed By PixelVJ. Investment in shares of a single group of companies cannot exceed 25% of its Owned Funds. The Reserve Bank of India has provided guidelines on Cyber Security Framework vide circular DBS. a. 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. 5. (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. Includes city gas distribution network, 4. Investment in shares of another company cannot exceed 15% of its Owned Funds. Made in India. All Rights Reserved. The RBI said NBFCs can invest only in PPPs and post-commercial operations date infrastructure (COD) projects which have completed at least one year of commercial operations. 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. Core Investment Company. RBI invites candidates to head Innovation Hub, RBI introduces digital payments index to track adoption, RBI bets on SupTech and RegTech to improve supervision, RBI to introduce ‘Digital Payment Security Controls’ guidelines, WhatsApp Launches UPI-Based Payments Feature In India, MediaNama: Roundtable On Copyright And Digital Media. DIRECT HOUSING FINANCE 2.1 Direct Housing Finance refers to the finance provided to individuals or groups of individuals including co-operative societies. Having norms for dividend distribution by finance companies has become necessary due to their increasing significance in the financial system and their interlinkages with different segments. The PIDF will operational for three years from January 1, 2021, which can be extended by two years if necessary. (Photo: Mint) RBI proposes new rules for housing finance companies 2 min read. 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%. 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. RBI Guidelines for Cyber Security Framework RBI Guidelines for Cyber Security Framework In a race to adopt technology innovations, Banks have increased their exposure to cyber incidents/ attacks thereby underlining the urgent need to put in place a robust cyber security and resilience framework. Includes Medical Colleges, Para Medical Training Institutes and Diagnostics Centres. 3. © 2008-2018 Mixed Bag Media Pvt. It has now been decided to introduce a fourth category of NBFCs as "Infrastructure Finance Companies" (IFCs). Currently, the Reserve Bank has classified NBFCs under three categories, viz., Asset Finance Companies, Loan companies and Investment Companies. The Reserve Bank of India (RBI) has introduced guidelines for the Payments Infrastructure Development Fund (PIDF) scheme, which will subsidise the deployment of payments touch points across Tier-3 to Tier-6 centres and the North-Eastern states. The extant norms for investment for both single party and single group of parties will remain same as in Para 18 of the Directions, i.e. Company history. ETBFSI; January 06, 2021, 11:51 IST In February 2013, RBI had issued final guidelines to apply for new banking licenses in the private sector. DIRECT HOUSING FINANCE 2.1 Direct Housing Finance refers to the finance provided to individuals or groups of individuals including co-operative societies. While the RBI has contributed ₹250 crore to the initial corpus of the PIDF, major card networks have provided ₹95 crore so far. Q.5. RBI relaxes ECB norms for infrastructure companies. Ans : IFC is a non-deposit accepting loan company which complies with the following : A minimum of 75 per cent of the total assets of an IFC-NBFC should be deployed in infrastructure loans; The company should have minimum net-worth of Rs 300 crore, The CRAR of of the company should be at 15% with Tier I capital at 10% and. Q.4. Their request must be supported by a certificate from their Statutory Auditors confirming the asset pattern of the company as on March 31, of the latest financial year. Kanungo, a deputy governor, to manage the fund. Guidelines on infrastructure financing Please refer to our Industrial & Export Credit Department's Circular No. at 40% of Owned Funds), ii. By: PTI | Mumbai | November 7, 2018 10:44 PM. Copyright © 2020 MediaNama. Ans “Infrastructure loan” means a credit facility extended by NBFCs to a borrower for exposure in the following infrastructure sub-sectors: Sl.No. b. ten percent of its owned fund to a single group of parties, (i.e. 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. Ltd. Education Institutions (capital stock). (Mint file) RBI to issue revised norms for housing finance companies 1 min read. 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. 5 DBOD-MC-Housing Finance - 2014 2. The financing of projects or companies involved in these sectors is called infrastructure financing. Meantime, to facilitate raising of funds for longer term lending, RBI has said that long-term bonds sold to finance the infrastructure sector will be exempt from certain regulatory requirements. 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. e) Foreign Currency Convertible Bonds (FCCBs) by Housing Finance Companies. To encourage infrastructure financing, RBI today eased norms for NBFCs to refinance such projects and provide longer repayment tenures. Let us grasp the extant guidelines which do alter our ways to do business with HFCs. RBI’s proposals clearly define home finance firms. A PIDF essentially subsides the cost of acquisition for banks to deploy payments infrastructure like physical PoS devices, mobile PoS, GPRS (General Packet Radio Service), PSTN (Public Switched Telephone Network), QR code-based payments and other card based payments methods. RBI has been easing norms for borrowings by various entities in the past few weeks – from infrastructure firms to non-banking finance companies – as the credit markets have turned tight following the default by Infrastructure Leasing & Financial Services Ltd. Ans “Infrastructure loan” means a credit facility extended by NBFCs to a borrower for exposure in the following infrastructure sub-sectors: 1. 21 November 2011. 5. © Reserve Bank of India. 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. NIIF Infrastructure Finance Limited was incorporated as an Infrastructure Debt Fund (IDF) on March 7, 2014 for financing operating infrastructure projects and carry on the business of IDF under NBFC Format as per RBI Guidelines. The Reserve Bank of India (RBI) is conducting a special audit of Kolkata-based lender Srei Infrastructure Finance and its subsidiary, Srei Equipment Finance. 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. b. 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. Yours faithfully (C.D. “NBFCs may refinance any existing infrastructure … But in the wake of the lockdown, digital... MediaNama is the premier source of information and analysis on Technology Policy in India. RBI issues guidelines for banks sponsoring infrastructure debt funds. Q.5. 2. Infrastructure Debt Fund-NBFC (IDF-NBFC) Facilitation of flow of long-term debt into infrastructure projects. List of Infrastructure Finance Companies (NBFC-IFCs) registered with RBI (As on July 16, 2020) List of NBFC- Peer to Peer (P2P) registered with RBI (As on July 16, 2020) List of Deposit accepting NBFCs registered with RBI that have been prohibited from accepting deposits under Section 45 MB of RBI Act,1934 (As on September 30, 2019) “Infrastructure companies couldn’t have asked for anything better at his point," said Subba Rao Amarthulu, group chief financial officer at RPG Enterprises. In a notification to the exchanges, the lender said, RBI has appointed an auditor to conduct a special audit in exercise of its powers under Section 45 MA (3) of the RBI Act, 1934. 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. What is an Infrastructure finance? Card networks to pay 1 basis point (bps) or, 0.01 paisa per rupee transaction, annually, Card issuing banks to 1 bps and 2 bps or, 0.01 paisa and 0.02 paisa per rupee transaction, for debit and credit cards respectively, on an annual basis, New entrants to the card payment eco-system (card issuer and card network) shall contribute an appropriate amount to the PIDF. 6. Risk Weights for … RBI guidelines on risk-weightage of NBFCs: Better credit flow, lower cost of funds among key benefits . While the RBI has set out broad guidelines, it has formed an Advisory Council (AC) responsible for managing the fund and framing the operational rules. Includes strategic storage of crude oil, 3. 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