The RBI has issued the Reserve Bank of India (Project Finance) Directions, 2025.
Key highlights of the directions are as follows:
Adoption of a principle-based regime for the resolution of stress in project finance exposures, harmonised across REs.
Rationalisation of permissible ‘date of commencement of commercial operations’ (DCCO) extensions with an overall ceiling of three and two years for infrastructure and non-infrastructure sectors, respectively.
Flexibility to REs in extending the DCCO within the above ceilings, based on their commercial assessments.
Rationalisation of standard asset provisioning requirement to 1% for projects under construction, which shall gradually increase for each quarter of DCCO deferment. The requirements for under construction CRE exposures will be however, slightly higher at 1.25%.
Under construction projects where financial closure has already been achieved shall continue to be guided by the extant provisioning norms to facilitate a seamless implementation.
During the operational phase, the standard asset provisioning requirement shall stand reduced to 1% for CRE, 0.75% for CRE-RH and 0.40% for other project exposures, respectively.
These Directions shall come into force with effect from October 01, 2025.Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12873&Mode=0
