Under the Notification No RBI/2015 –
16/417DBNR.CC.PD.No.082/03.10.001/2015 – 16 dated June 02,
2016 (the NBFC Refinancing Circular), the Reserve Bank of India
(RBI) has stated that Non – Banking Finance Companies (NBFCs)
can refinance existing infrastructure and other project loans by
way of take – out financing, under a longer repayment period
and in absence of any pre – determined agreement, without
such refinancing amounting to 'restructuring', on
fulfilment of certain conditions.
Under the NBFC Refinancing Circular, such refinancing by NBFCs
shall not be restructuring of the project loans provided that such
loans have not been restructured in the past, at least 50% of such
loans should have been taken over from the existing lenders and
that the repayment period should be fixed taking into consideration
the economic life of such project assets. In the event that the
aggregate exposure of institutional lenders is in excess of Rs.
1000 crores, NBFCs may restructure
