The International Financial Services Centres Authority (IFSCA) on April 20, 2023, issued a clarification regarding the Guidance framework on Sustainable and Sustainability linked lending by financial institutions with reference to the circular number F. No 584/ IFSCA/Sustainable Finance- LF/2022-23/001 dated April 26, 2022.
The Authority further clarifies that, reiterated that the 5 percent target as specified in the circular shall be computed as a percentage of fresh loans and advances disbursed during the previous year and which remain outstanding at the end of that financial year. This calculation method is exemplified below and shall be applicable from the financial year beginning April 01, 2023, onwards.
[File No. 584/ IFSCA/Sustainable Finance- LF/2023-24/002]
