Mumbai, Aug. 7 -- Reserve Bank of India (RBI) has come up with Non-Fund Based Credit Facilities Directions, 2025 yesterday. These guidelines permit regulated entities (RE) such as banks, All India Financial Institutions (AIFIs), alternative investment funds, Non-Banking Financial Companies (NBFCs) and development finance institutions to provide credit enhancement, helping infrastructure companies to improve their ratings while freeing up bank limits for these companies.

Non-fund based (NFB) facilities like guarantees, letters of credit, co-acceptances etc. facilitate effective credit intermediation and smooth business transactions. In order to harmonize and consolidate guidelines covering these facilities across the entities regulated by...