RBI sops for infra debt funds to diversify core sector lending
MUMBAI: In a boost to core sector financing through infrastructure debt funds (IDFs), the Reserve Bank of India has relaxed several norms for NBFC-IDFs, levelling the playing field with other lenders.
IDFs are specialised investment vehicles channelling long-term domestic and international funds for financing projects. IDFs can be set up as NBFCs or mutual funds, allowing investors to pool their funds in a diversified portfolio of infrastructure projects.
The new rules for IDFs say that there is no need for a sponsor for IDFs anymore. Also IDFs can now directly lend money to Toll Operate Transfer projects (ToT).
