Answer-The Reserve Bank of India (RBI) has permitted non-banking finance companies operating as Infrastruct...

The Reserve Bank of India RBI has permitted non-banking finance companies operating as Infrastructure Debt Fund IDF-NBFCs to raise money through external commercial borrowings ECBs. These borrowings will be subject to a minimum tenor of five years, and IDF-NBFCs are prohibited from sourcing the ECB loans from the foreign branches of Indian banks, as stated by the RBI in communication to the companies. An IDF-NBFC shall be required to have an NOF of at least 300 crore and capital-to-risk weighted assets ratio CRAR of minimum 15 per cent with minimum Tier 1 capital of 10 per cent. The exposure limits for IDF-NBFCs shall be 30 of their Tier 1 capital for single borrower party and 50 of their Tier 1 capital for single group of borrowers parties. Currently, there are three active IDF-NBFCs NIIF Infrastructure Finance Ltd, India Infradebt Ltd, and Kotak Infrastructure Debt Fund, with combined assets under management AUM of about Rs 36,000 crore.

Question

The Reserve Bank of India (RB

I has permitted non-banking finance companies operating as Infrastructure Debt Fund (IDF-NBFCs) to raise money through external commercial borrowings (ECBs). Which of the following statements is/are correct with respect to the information provided above ? I. These external commercial borrowings will be subject to a minimum tenor of five years, and IDF-NBFCs are prohibited from sourcing the ECB loans from the foreign branches of Indian banks, as stated by the RBI in communication to the companies. II.An IDF-NBFC shall be required to have an NOF of at least ₹300 crore and capital-to-risk weighted assets ratio (CRA
M of about Rs 36,000 crore.
R of minimum 15 per cent (with minimum Tier 1 capital of 10 per cent). III.The exposure limits for IDF-NBFCs shall be 40% of their Tier 1 capital for single borrower/ party and 50% of their Tier 1 capital for a single group of borrowers/ parties. IV.Currently, there are three active IDF-NBFCs: NIIF Infrastructure Finance Ltd, India Infradebt Ltd, and Kotak Infrastructure Debt Fund, with combined assets under management (AU