Kotak Mahindra Bank has set up a new subsidiary Kotak Infrastructure Debt Fund. The unit received a certificate of registration from the RBI and it has started the business of non-banking financial institution as infrastructure debt fund (NBC-IDF). The board of the bank had recently approved raising over Rs 5000 crore. The bank has not been lending to the infrastructure segment so far. The RBI had starting 2013, allowed banks and non-banks to float IDFs for meeting the requirements of the infrastructure sector. IDFs are envisaged as vehicles for refinancing existing debt of infrastructure firm, thereby creating fresh headroom for banks to lend to fresh projects. At present, three IDFs are in operation, promoted by ICICI Bank, IDFC and Larsen & Toubro.