This definition is used in order to provide tax breaks or subsidies that have been promised to the infrastructure sector. Section 20A of the Banking Regulation Act, 1949 stipulates that notwithstanding anything to the contrary contained in Section 293 of the Companies Act, 1956, a banking company shall not, except with the prior approval of the Reserve Bank, remit in whole or in part any debt due to it by - (a) any of its directors, or The Reserve Bank of India (RBI) has introduced guidelines for the Payments Infrastructure Development Fund (PIDF) scheme, which will subsidise the deployment of … RBI has put in its web site newly proposed guidelines inviting observations from all stakeholders to be received latest by July 15, 2020 by email to feedbackhfc@rbi.org.in related to Housing Finance Companies popularly known as “HFCs”. Having norms for dividend distribution by finance companies has become necessary due to their increasing significance in the financial system and their interlinkages with different segments. Includes optic fibre/cable networks which provide broadband / internet, 5. The Reserve Bank of India (RBI) has introduced guidelines for the Payments Infrastructure Development Fund (PIDF) scheme, which will subsidise the deployment of payments touch points across Tier-3 to Tier-6 centres and the North-Eastern states. While the RBI has contributed ₹250 crore to the initial corpus of the PIDF, major card networks have provided ₹95 crore so far. Let us grasp the extant guidelines which do alter our ways to do business with HFCs. Payments infrastructure incurs a cost for all players in the chain, from banks, non-bank players like fintechs and wallet players to Point-of-Sale (PoS) device manufacturers. (Mint file) RBI to issue revised norms for housing finance companies 1 min read. Ans: Infrastructure Finance Companies can maintain risk weight at 50% for assets covering PPP and post commercial operations date (COD) projects which have completed at least one year of satisfactory commercial operations and which are backed by a buyback guarantee by a designated Project / Statutory authority under a Tripartite Agreement. Depending on their performance, the subsidy will be paid on a half yearly basis, the RBI says. About dividend distribution policy by NBFCs, the RBI said unlike banks, there are no guidelines for distribution of dividend by NBFCs. Q.5. The Reserve Bank of India on Tuesday announced operational guidelines for the Payments Infrastructure Development Fund scheme.The RBI said that it has constituted an advisory council under the chairmanship of B.P. What is an Infrastructure finance? 2. List of Infrastructure Finance Companies (NBFC-IFCs) registered with RBI (As on July 16, 2020) List of NBFC- Peer to Peer (P2P) registered with RBI (As on July 16, 2020) List of Deposit accepting NBFCs registered with RBI that have been prohibited from accepting deposits under Section 45 MB of RBI Act,1934 (As on September 30, 2019) DIRECT HOUSING FINANCE 2.1 Direct Housing Finance refers to the finance provided to individuals or groups of individuals including co-operative societies. Meantime, to facilitate raising of funds for longer term lending, RBI has said that long-term bonds sold to finance the infrastructure sector will be exempt from certain regulatory requirements. Updated: 18 Jun 2020, 12:09 AM IST Gopika Gopakumar. The PIDF will be operational for three years from 1 January 2021, and may be extended for two more years based on progress. The RBI said NBFCs can invest only in PPPs and post-commercial operations date infrastructure (COD) projects which have completed at least one year of commercial operations. 2. The Reserve Bank of India (RBI) has introduced guidelines for the Payments Infrastructure Development Fund (PIDF) scheme, which will subsidise the deployment of … The current legal status. Q.2. The Reserve Bank of India has issued a revised set of guidelines for housing finance companies after it took over regulation of these lenders last year. Made in India. Company dealing with Infrastructure Finance. Going forward, issuing banks will have to pay the same rate for every new debit and credit card they issue, respectively, during the year. Guidelines on infrastructure financing Please refer to our Industrial & Export Credit Department's Circular No. The fund will be used to subsidize banks and non-banks for deploying payment infrastructure. 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