Saturday, February 14, 2015

RBI allowed NBFCs to fund Cost Overruns

In cases where Non-Banking Finance Companies (NBFCs) have specifically sanctioned a ‘Standby Facility’ at the time of initial financial closure (of infrastructure and non-infrastructure projects) but the same does not envisage financing of cost overruns, the RBI has allowed them to fund cost overruns. NBFCs can fund cost overruns without treating the loans as a ‘restructured asset’ subject to prescribed conditions.

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