Presently, IDF-NBFCs are allowed to raise resources through issue of bonds of minimum five years maturity.
"On a review, with a view to facilitate better asset liability management, it has been decided in consultation with the Government of India, to allow IDF-NBFCs to raise funds through shorter tenor bonds and commercial papers (CPs) from the domestic market to the extent of up to 10 per cent of their total outstanding borrowings," RBI said in a notification.
IDF-NBFC was created to raise funds to primarily fund infrastructure projects.