Authority : Reserve Bank of India (“RBI”)

Name of the Legislation : Circular on Infrastructure Financing- Definition of ‘Infrastructure Lending’

Date of the circular: March 02, 2017

Change: The Definition of ‘Infrastructure Lending’ is given in Chapter II, Section I, Para №3 of :

· Master Direction-Non-Banking Financial Company-Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 Master Direction

· Non-Banking Financial Company-Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016

The definition has been changed. The new definition is as follows:

“Infrastructure Lending” means a credit facility extended by NBFC to a borrower, by way of term loan, project loan, subscription to bonds/debentures/preference shares/ equity shares in a project company acquired as a part of the project finance package such that subscription amount to be “in the nature of advance” or any other form of long term funded facility for exposure in the infrastructure sub-sectors as notified by the Department of Economic Affairs, Ministry of Finance, Government of India, from time to time.

For more details please refer to the following link –

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