📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    What is the minimum Net Owned Fund (NOF) requirement for

    an Infrastructure Finance Company (IFC)?
    A ₹ 100 crore Correct Answer Incorrect Answer
    B ₹ 200 crore Correct Answer Incorrect Answer
    C ₹ 300 crore Correct Answer Incorrect Answer
    D ₹ 500 crore Correct Answer Incorrect Answer
    E ₹ 1000 crore Correct Answer Incorrect Answer

    Solution

    The minimum Net Owned Fund (NOF) required for an Infrastructure Finance Company (IFC) is ₹ 300 crore. Eligibility Criteria for IFC 1. The company must deploy at least 75% of its total assets in infrastructure loans. 2. It must maintain a minimum Net Owned Fund (NOF) of ₹ 300 crore. 3. It should have a minimum credit rating of ‘A’ or equivalent. 4. It must maintain a Capital to Risk-Weighted Assets Ratio (CRAR) of 15%. Definition of Infrastructure Loans • Loans given to sectors such as power, roads, ports, airports, telecom, urban infrastructure, and other government-notified infrastructure sectors. Role of RBI • The Reserve Bank of India (RBI) regulates IFCs as a special category under NBFCs to ensure stability and growth in infrastructure financing.

    Practice Next
    ask-question