📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Which of the following is not a specified criteria to be

      fulfilled by Infrastructure Finance Companies (IFC)?
      A A minimum of 75 per cent of its total assets deployed in “infrastructure loans”; Correct Answer Incorrect Answer
      B Net owned funds of ₹300 crore or above; Correct Answer Incorrect Answer
      C Minimum credit rating of 'A' issued by any of the SEBI-registered Credit Rating Agencies; Correct Answer Incorrect Answer
      D Minimum number of branches to be operated by the IFC as specified by RBI. Correct Answer Incorrect Answer
      E CRAR of 15 per cent (with a minimum Tier I capital of 10 per cent). Correct Answer Incorrect Answer

      Solution

      IFCs - infrastructure finance companies “Infrastructure Finance Company” means a non-deposit taking NBFC that fulfils the following criteria: (a) a minimum of 75 per cent of its total assets deployed in “infrastructure loans”; (b) Net owned funds of ₹300 crore or above; (c) minimum credit rating of 'A' issued by any of the SEBI-registered Credit Rating Agencies; (d) CRAR of 15 per cent (with a minimum Tier I capital of 10 per cent). It is important to note that there is no specified minimum number of branches that an Infrastructure Finance Company (IFC) needs to operate. The Reserve Bank of India (RBI), which regulates the functioning of IFCs, does not have any such requirement.

      Practice Next
      More Financial Management Questions

      Relevant for Exams:

      ask-question