FinMin proposes DFI tag for IIFCL to support long term financial needs

IIFCL is a government-owned entity, which is registered as a non-deposit accepting loan company with the Reserve Bank of India.

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The move to convert IIFCL into a DFI is expected to reduce the cost of borrowings for long-term infrastructure projects

Somesh Jha New Delhi
The finance ministry has proposed giving the ‘development finance institution’ (DFI) tag to India Infrastructure Finance Company Limited (IIFCL) in a bid to support long-term financial needs of infrastructure projects.

“The department of financial services (DFS) has prepared a Cabinet note to give DFI status to IIFCL. The proposal being discussed will require the approval of Parliament as a Bill will be introduced to effect the change,” a finance ministry official said, requesting anonymity.

DFS Secretary Debasish Panda didn’t respond to queries from Business Standard.

First Published: Dec 01 2020 | 01:50 AM IST

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