IFSCA on April 20, 2023 has issued clarification about Guidance framework on Sustainable and Sustainability linked lending by financial institutions. Guidance framework on Sustainable and Sustainability linked lending by financial institutions issued by the International Financial Services Centres Authority on April 26, 2022 and the subsequent FAQs on the said circular issued on February 22, 2023 provided the methodology to be adopted by the IBUs and FC/FUs for the purpose of computing the five percent target for loans and advances.
For the purpose of further clarity, it is reiterated that the five percent target as specified in the said circular, shall be computed as a percentage of fresh loans and advances disbursed during the previous year and which remain outstanding as at the end of that financial year.
This calculation method shall be applicable from the financial year beginning April 01, 2023 onwards.
