DEBT FUND ALLOWED

The Reserve bank of India (RBI) has issued guidelines to allow banks and NBFCs to sponsor Infrastructure Debt Funds (IDFs), to support long term finance in infrastructure. NBFCs trying to set up IDFs should have been operational for at least 5 years, should have minimum net owned funds of Rs.300 Crore and a capital adequacy ratio of 15 percent. Moreover, its net non performing assets should be less than 3 percent of net advances.