Ozg NBFC Consultant
Ozg Center, New Delhi & Mumbai
Phone # 09811415831-37-61-72-84-92-94
Website: http://nbfc.ozg.in
Email: ask@nbfcregistration.com
Q1. What is an Infrastructure finance?
Ans “Infrastructure loan” means a credit facility extended
by NBFCs to a borrower for exposure in the following infrastructure
sub-sectors:
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Notes:
1. Includes supporting terminal infrastructure such as loading/unloading terminals, stations and buildings
6. Includes cold room facility for
farm level pre-cooling, for preservation or storage of agriculture and
allied produce, marine products and meat.
Q2. What is an IFC and what are the eligibility or entry point norms for registration of an IFC-NBFC with RBI?
Ans : IFC is a non-deposit accepting loan company which complies with the following :
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A minimum of 75 per cent of the total assets of an IFC-NBFC should be deployed in infrastructure loans;
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The company should have minimum net-worth of Rs 300 crore,
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The CRAR of of the company should be at 15% with Tier I capital at 10% and
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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.
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
Q3. What are the credit concentration norms for IFCs?
Ans : IFCs may exceed the concentration of credit norms as provided in paragraph 18 of the aforesaid Directions as under:
i. In lending to
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. at 40% of Owned Funds)
ii. In lending and investing (loans/investments taken together) by
a. five percent of its owned fund to a single party, (i.e.at 30% of Owned Funds); and
b. ten percent of its owned fund to a single group of parties, (i.e. at 50% of Owned funds).
iii. 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.
a. Investment in shares of another company cannot exceed 15% of its Owned Funds
b. Investment in shares of a single group of companies cannot exceed 25% of its Owned Funds.
Q.4 What is the risk weight IFCs have to
maintain on assets covering PPP and which have completed one year of
commercial production?
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.
Ozg NBFC Consultant
Ozg Center, New Delhi & Mumbai
Phone # 09811415831-37-61-72-84-92-94