What is covered under infrastructure as defined by RBI?

What is covered under infrastructure as defined by RBI?

Railway Track, tunnels, viaducts, bridges1. vi. Urban Public Transport (except rolling stock in case of urban road transport) 2. Energy.

How many categories are there in PSL?

4. The categories under priority sector are as follows: Agriculture. Micro, Small and Medium Enterprises….

What is PSL category?

Introduction to Priority Sector Lending (PSL) Priority Sectors Lending is the role exercised by the RBI to banks, imploring them to dedicate funds for specific sectors of the economy like agriculture and allied activities, education and housing and food for the poorer population.

What is infrastructure credit?

Credit infrastructure is the set of laws and institutions that enables efficient and effective access to finance, financial stability, and socially responsible economic growth through credit reporting, secured transactions & collateral registries; and insolvency & debt resolution. Overview.

What are infrastructure loans?

Infrastructure loan means a loan of fund money to finance a transportation project.

What is non PSL?

Non-Priority Sector lending is the sector towards which financial institutions are always ready to lend credit. It attracts finance every time. It covers all the remaining sectors which are other than PSL.

Is PSL applicable to NBFC?

The banks can classify on-lending to NBFC in the respective categories of PSL. The classification will be allowed only when the NBFC has disbursed the Priority Sector Loans to the ultimate beneficiary after receiving the funds from the bank.

What is an infrastructure finance company?

Infrastructure finance companies are a non-deposit accepting, loan company that have a minimum of 75% of the total assets of the company deployed as infrastructure loans. Further, infrastructure finance companies are also required to have a minimum net-worth of Rs.

What is IDF in banking?

Q1. What is an Infrastructure Debt Fund (IDF)? Ans : IDFs are investment vehicles which can be sponsored by commercial banks and NBFCs in India in which domestic/offshore institutional investors, specially insurance and pension funds can invest through units and bonds issued by the IDFs.

When did RBI come out with draft guidelines?

Draft guidelines were placed twice on the RBI website vide our circulars DBOD.BP.No. 11021/08.12.015/2008-09 dated January 7, 2009 and DBOD.BP.No.502/ 08.12.015/ 2008-09 dated July 7, 2009, respectively, for comments of banks and general public. 3.

Which is an example of infrastructure lending in India?

A credit facility extended by lenders (i.e. banks and select All India Term-Lending and Refinancing Institutions) to a borrower for exposure in the following infrastructure sub-sectors will qualify as ‘infrastructure lending’: Three-star or higher category classified hotels located outside cities with population of more than 1 million

Which is a characteristic of an infrastructure project?

Infrastructure and core industries projects are characterised by long gestation periods and large capital investments. The long maturities of such project loans consist of the initial construction period and the economic life of the asset /underlying concession period (usually 25-30 years).

Do you need to report CRE exposure to RBI?

The exposure should also be reported to RBI under both the classifications with an appropriate foot note to avoid double counting. Banks could deal with any other instances of dual classification of exposures involving exposure to CRE, based on these principles. 4.