The recently approved Infrastructure Debt Fund (IDF) will be based on a tripartite agreement b/w developer, lender (bank) and the IDF. The decision has been taken to infusing greater funds into infrastructure development in the country. Loans by the banks would be refinanced by IDF so that the lenders have free funds for more lending. The fund would try to gather resources from domestic and off-shore institutional investors, especially insurance and pension funds.

What will IDF do here?

Initially, infrastructure projects are financed by banks or a consortium of banks. Such projects need long-term funding of 20-25 years, while banks cannot fund beyond 5-7 years. IDF s will provide the long-term funds for the remainder of the life of the project.

Who will regulate IDF?
An IDF may be established either as a trust or company. A trust based IDF (Mutual Fund) would be regulated by SEBI, while an IDF created as a company (NBFC) would be regulated by the RBI.
The 12th Plan (2012-17) has pegged the requirement of infrastructure fund at $1 trillion.

ICICI Bank will launch its services through social website ‘Facebook’ in order to expand its internet banking services. ICICI is among the first banks to start its online presence and facilitate non-cash transactions i.e. requests for cheque books, account statement enquiry etc. The bank also plans to allow debit and credit transactions.
The bank unveiled eLocker facility to wealth customers and started a 24*7 electronic branch. The bank has also launched the Tab Banking Services for potential customers, who can open their accounts from any location. ICICI will carry out the initiative of social network expansion under the tag line Khayaal Aapka (your care).

An MoU was signed b/w Mahindra & Mahindra and the Oriental Bank of Commerce (OBC) for personal and commercial vehicle financing.

Credit Information Bureau (India) Ltd (CIBIL) is likely to bring in a “Risk Index” that will assist country’s banks in making faster decisions on extending loans to corporates and business houses.

Banks would be able to gauge the potential of a company in servicing its loan by looking at its position in the index.

The Risk Index:

• The Risk Index will be in the form of a score ranging from 300 to 900, a glance of which will provide the Bank the credit history of the respective companies.
• While Banks, currently, take the help of credit rating agencies who provide a broader picture of the risk profile of the company on the basis of their trade data and balance sheets, the Risk index will assist lenders analyze the profile of business establishments.

The RBI has allowed Regional Rural Banks (RRBs) to open branches in Tier-II cities without asking for permit. 
As per a notification by RBI, RRBs would be allowed to launch branches in Tier-II cities with a population of 50,000 to 99,999 as per 2001 census with certain conditions. The decision has been taken to increase the reach of banking services in Tier-II cities.

RRBs will also have authority to take decision on the applications of RRBs for opening, shifting, merger or conversion of branches without reference to the concerned Empowered Committees in order to speed up the process.