Currently, the Reserve Bank has classified NBFCs under three categories, viz., Asset Finance Companies, Loan companies and Investment Companies. 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. The COVID-19 pandemic shut businesses and restricted people from normal activity for several months in 2020. 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. at 40% of Owned Funds), ii. •Further, exposure of a bank to the NBFCs-IFCs (Infrastructure Finance Companies) should not exceed 15 per cent of its capital funds as per its last audited balance sheet, with a provision to increase it to 20 per cent if the same is on account of funds on-lent by the IFCs to the infrastructure sector. 21 November 2011. 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 : 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. The guidelines will be technology and platform agnostic, the RBI said. 5 DBOD-MC-Housing Finance - 2014 2. What constitutes ‘credit facility’ under the definition of infrastructure loan? 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. . “NBFCs may refinance any existing infrastructure … Save my name, email, and website in this browser for the next time I comment. 4. 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. Company dealing with Infrastructure Finance. Guidelines on infrastructure financing Please refer to our Industrial & Export Credit Department's Circular No. (Photo: Mint) RBI proposes new rules for housing finance companies 2 min read. (Mint file) RBI to issue revised norms for housing finance companies 1 min read. Your email address will not be published. RBI’s proposals clearly define home finance firms. Read more about SREI Infra tumbles after RBI initiates special audit on Business Standard. The Reserve Bank of India (RBI) is conducting a special audit of Kolkata-based lender Srei Infrastructure Finance and its subsidiary, Srei Equipment Finance. The Reserve Bank of India has provided guidelines on Cyber Security Framework vide circular DBS. The guidelines will be technology and platform agnostic, the RBI said. 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. Core Investment Company. © 2008-2018 Mixed Bag Media Pvt. 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%. Includes strategic storage of crude oil, 3. Q.5. RBI issues guidelines for banks sponsoring infrastructure debt funds. The RBI will contribute to yearly shortfalls, if any. 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. Updated: 13 Aug 2019, 07:16 PM IST Shayan Ghosh. Best viewed in 1024x768 resolution in IE 5 and above. i. It provides finance and advisory services for infrastructure projects as well as asset management and investment banking. NBFC-Infrastructure Finance Company (NBFC-IFC) Provision of infrastructure loans. Risk Weights for … 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. 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. Let us grasp the extant guidelines which do alter our ways to do business with HFCs. 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. 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. 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. 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. The Reserve Bank of India on Tuesday announced operational guidelines for the Payments Infrastructure Development Fund scheme.The RBI said that it has constituted an advisory council under the chairmanship of B.P. 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. Investment and Credit Company (Recently, RBI has merged Asset Finance Companies, Investment Companies and Loan Companies into a single category) Infrastructure Debt Fund (IDF-NBFC) Non-Banking Financial Company – Factors (NBFC-Factors) Peer to Peer Lending Marketplace. Education Institutions (capital stock). Please refer to the definition of 'Infrastructure Lending' contained in the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016. Infrastructure Development Finance Company Limited, more commonly known as IDFC, is a finance company based in India. The above facility will be available only once during the life of the existing project loans. Includes optic fibre/cable networks which provide broadband / internet, 5. (Photo: Mint) RBI proposes new rules for housing finance companies 2 min read. The final guidelines follow a draft issued in June this year and seek to harmonise regulations between non-bank lenders and housing financiers. Ltd. 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. The PIDF will operational for three years from January 1, 2021, which can be extended by two years if necessary. 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. While the RBI has contributed ₹250 crore to the initial corpus of the PIDF, major card networks have provided ₹95 crore so far. d) Infrastructure Finance Companies (IFCs) i.e. Further, exposure of a bank to the NBFCs-IFCs (Infrastructure Finance Companies) should not exceed 15 per cent of its capital funds as per its last audited balance sheet, with a provision to increase it to 20 per cent if the same is on account of funds on-lent by the IFCs to the infrastructure sector. RBI has put in its web site newly proposed guidelines inviting observations from all stakeholders to be received latest by July 15, 2020 by email to feedbackhfc@rbi.org.in related to Housing Finance Companies popularly known as “HFCs”. However, this definition is more for the government’s internal operations. Housing finance companies will be treated as a category of non-banks Annual Return on Deposits (Filed annually after closure of financial year and latest by September 30) Regional Office of Department of Non-­ Banking Supervision, RBI where registered office of the company is situated: Form Schedule “A” General Information of the Company (filed annually as early as possible latest by the 30th September) Updated: 18 Jun 2020, 12:09 AM IST Gopika Gopakumar. a. By: PTI | Mumbai | November 7, 2018 10:44 PM. The PIDF will be operational for three years from 1 January 2021, and may be extended for two more years based on progress. 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. The minimum credit rating of the company should be at 'A' or equivalent of CRISIL, FITCH, CARE, ICRA, BRICKWORK or equivalent rating by any other accrediting rating agencies. Infrastructure Debt Fund-NBFC (IDF-NBFC) Facilitation of flow of long-term debt into infrastructure projects. RBI relaxes ECB norms for infrastructure companies. RBI announces guidelines for Payments Infrastructure Development Fund. After CEO Dick Costolo, Twitter’s M&A Head Rishi Garg Quits, Gujarat HC Gives Livestreaming Court Proceedings A Shot, Sunil Mehta, Chief Executive of the Indian Banks’ Association, Dilip Asbe, Chief Executive Officer, National Payments Corporation of India, Vishwas Patel, Chairman of Payments Council of India, Shailesh Paul, Vice President and Head Merchant Sales and Solutions, Visa, Rajeev Kumar, Senior Vice President, Market Development, Mastercard, D Nageswara Rao, Chief General Manager, NABARD, R Vittal Raj, Chartered Accountant, Kumar & Raj Chartered Accountants, Ajay Michyari, Regional Director, Reserve Bank of India, Card issuing banks should pay ₹ 1 per debit card and ₹3 per credit card they have issued. , 5 constitutes ‘ credit facility extended by NBFCs to a single group parties... 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