Q. Consider the following statements regarding Infrastructure Finance Companies (IFCs):

1. IFCs are permitted to finance infrastructure projects for more than 75% of their total assets, thereby enabling them to undertake substantial business in infrastructure financing.
2. IFCs are eligible for issuance of ‘infrastructure bonds’ and can raise funds up to 500 million US dollars annually through external commercial borrowing (ECB).

Which of the above statements is / are correct?
Answer: Both 1 and 2
Notes: Both statements are correct. IFCs, as per RBI guidelines, are permitted to deploy over 75% of their total assets for financing infrastructure projects. Additionally, IFCs are authorized to issue infrastructure bonds and are allowed to raise up to 500 million US dollars annually through ECB, thus providing them with access to significant domestic and global funding options for infrastructure development.