As announced in the Statement on Developmental and Regulatory Policies dated October 06, 2023, with a view to strengthen the extant regulatory framework governing project finance and to harmonise the instructions across all regulated entities, the Reserve Bank of India today released the draft Direction on the prudential framework applicable to financing of project loans. Given the complexities involved in project finance, the revised guidelines seek to provide an enabling framework for the regulated entities for financing of project loans, while addressing the underlying risks. The Comments on the draft Direction are invited from public/stakeholders by June 15, 2024.

Comments/ feedback may be forwarded to:

The Chief General Manager
Credit Risk Group
Department of Regulation, Central Office
Reserve Bank of India, 12/13th Floor,
Shahid Bhagat Singh Marg,
Fort Mumbai – 400 001

or

by email

(Yogesh Dayal)     
Chief General Manager

Prudential framework for project finance: draft directions issued to harmonise lending norms and seek stakeholder comments. The draft Direction establishes a prudential framework for financing project loans-covering Income Recognition, Asset Classification and Provisioning for projects under implementation-to harmonise instructions across regulated entities, strengthen regulatory treatment for project finance, and provide an enabling framework that addresses credit and execution risks; stakeholder comments are invited by the specified deadline.