Appraisal of financing infrastructure projects

Any credit facility provided to a borrower company engaged in an infrastructure facility is known as ‘infrastructure lending’.  The activities such as developing, or operating, and maintaining, or developing, operating, and maintaining any infrastructure facility of the following sector are called infrastructure projects.  a road, including toll road, a bridge or a rail system;  a…

Appraisal of Working Capital Finance to Information Technology and Software Industry

Reserve Bank of India has framed guidelines for extending working capital finance to the Information Technology and Software Industry, based on the recommendations of the National Taskforce on Information Technology and Software development. However, said guidelines prepared by the central bank are not mandatory for lenders. They are free to modify RBI framed guidelines, built…

Resolution framework -2.0: Enhancement of limits offered to individuals and small businesses

RBI on June 04, 2021 permitted lending institutions to offer a limited window to individual borrowers and small businesses to implement resolution plans in respect of their credit exposures while classifying the same as Standard upon implementation of the resolution plan subject to certain conditions under the framework. RBI in its circular DOR.STR.REC.11/21.04.048/2021-22 on “Resolution…

RBI provides more credit for intensive sectors like restaurants, hotels, tourism travels, and others

The Reserve Bank of India (RBI) has decided to open an “On-tap Liquidity Window for Contact-intensive Sectors” aggregating Rs15000 crores till March 31, 2022. These sectors include hotels and restaurants, tourism, rent-a-car service providers. In the Statement on Developmental and Regulatory Policies announced by RBI on 04.06.2021, RBI Governor Shaktikanta Das announced that “In order…