BANKING AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -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 Rs 300 crore, c) has a minimum credit rating of ‘A ‘or equivalent d) and a CRAR of 15%.

Detailed explanation-3: -Qualifying assets have been increased to Rs300, 000 household income from Rs125, 000/200, 000 in rural and semi-urban/urban locations. This will expand the market size, especially for rural and semi-urban catering NBFC-MFIs. RBI has also clearly defined ‘household’ as husband, wife and unmarried children.

Detailed explanation-4: -Introduction: Infrastructure Finance Company Infrastructure Finance Company provides credit facilities to the borrowers in the specific infrastructure sectors. The creation of a separate category of NBFC’S (NBFC-IFC), expected to plays a major role in the banking industry as a provider of infrastructure finance.

Detailed explanation-5: -This includes ensuring credit availability to the productive sectors of the economy, establishing institutions designed to build the country’s financial infrastructure, expanding access to affordable financial services and promoting financial education and literacy.