{"id":973,"date":"2025-06-19T17:05:00","date_gmt":"2025-06-19T17:05:00","guid":{"rendered":"https:\/\/jbco.co.in\/reserve-bank-of-india-project-finance-directions-2025\/"},"modified":"2025-06-19T17:05:00","modified_gmt":"2025-06-19T17:05:00","slug":"reserve-bank-of-india-project-finance-directions-2025","status":"publish","type":"post","link":"https:\/\/jbco.co.in\/?p=973","title":{"rendered":"Reserve Bank of India (Project Finance) Directions, 2025"},"content":{"rendered":"\n\n
\n

RBI\/2025-26\/59
DOR.STR.REC.34\/21.04.048\/2025-26<\/p>\n

June 19, 2025<\/p>\n

Reserve Bank of India (Project Finance) Directions, 2025<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
I. Introduction<\/a><\/td>\n<\/tr>\n
II. Preliminary<\/a><\/td>\n<\/tr>\n
A. Preamble<\/a><\/td>\n<\/tr>\n
B. Powers Exercised<\/a><\/td>\n<\/tr>\n
C. Short Title and Commencement<\/a><\/td>\n<\/tr>\n
D. Effective Date<\/a><\/td>\n<\/tr>\n
E. Applicability<\/a><\/td>\n<\/tr>\n
F. Definitions<\/a><\/td>\n<\/tr>\n
III. General Guidelines<\/a><\/td>\n<\/tr>\n
G. Phases of Projects<\/a><\/td>\n<\/tr>\n
H. Prudential Conditions Related to Sanction<\/a><\/td>\n<\/tr>\n
I. Prudential Conditions Related to Disbursement and Monitoring<\/a><\/td>\n<\/tr>\n
IV. Prudential Norms for Resolution<\/a><\/td>\n<\/tr>\n
J. Resolution of Stress<\/a><\/td>\n<\/tr>\n
K. Resolution Plans Involving Extension of Original \/ Extended DCCO<\/a><\/td>\n<\/tr>\n
L. Criteria for Upgradation<\/a><\/td>\n<\/tr>\n
M. Income Recognition<\/a><\/td>\n<\/tr>\n
N. Provisioning for Standard Assets<\/a><\/td>\n<\/tr>\n
O. Provisioning for DCCO Deferred Standard Assets<\/a><\/td>\n<\/tr>\n
P. Provisioning for Existing Projects<\/a><\/td>\n<\/tr>\n
Q. Provisioning for Non-Performing Assets<\/a><\/td>\n<\/tr>\n
V. Miscellaneous<\/a><\/td>\n<\/tr>\n
R. Creation and Maintenance of Database<\/a><\/td>\n<\/tr>\n
S. Disclosures<\/a><\/td>\n<\/tr>\n
T. Penal Consequences for Non-compliance<\/a><\/td>\n<\/tr>\n
U. Repeal Provisions<\/a><\/td>\n<\/tr>\n<\/table>\n

<\/a>I. Introduction<\/p>\n

The Reserve Bank of India has, over the past few years, taken concerted measures for putting in place a principle-based regime for resolution of stressed assets. The Prudential Framework for Resolution of Stressed Assets issued on June 7, 2019<\/a>, as updated from time to time, (\u2018Prudential Framework\u2019<\/span>) provides a comprehensive framework for early recognition and resolution of stress in borrower accounts. However, restructuring of exposures relating to projects under implementation on account of change in date of commencement of commercial operations (DCCO) was excluded from the ambit of the Prudential Framework, pending further review.<\/p>\n

Based on a comprehensive review of the regulatory norms and taking into account the experience of banks with regard to financing of project loans, it has been decided to rationalise the extant guidelines and harmonise the same for all regulated entities (REs) which undertake project finance.<\/p>\n

<\/a>II. Preliminary<\/p>\n

<\/a>A. Preamble<\/p>\n

1. These Directions are issued to provide a harmonised framework for financing of projects in infrastructure and non-infrastructure (including commercial real estate & commercial real estate- residential housing) sectors by REs. These Directions also lay down the revised regulatory treatment upon change in the DCCO of such projects in the backdrop of a review of the extant instructions and analysis of the risks inherent in such financing. <\/p>\n

<\/a>B. Powers Exercised<\/p>\n

2. In exercise of the powers conferred by Sections 21 and 35A of Banking Regulation Act, 1949 read with Section 56 of the Act ibid; Chapter IIIB of the Reserve Bank of India Act, 1934; Section 30A of the National Housing Bank Act, 1987, read with Section 32 and Section 33 of the Act ibid; the Reserve Bank of India (hereinafter called the Reserve Bank), being satisfied that it is necessary and expedient in public interest to do so, hereby, issues these Directions hereinafter specified.<\/p>\n

<\/a>C. Short Title and Commencement<\/p>\n

3. These Directions shall be called the Reserve Bank of India (Project Finance) Directions, 2025.<\/p>\n

<\/a>D. Effective Date<\/p>\n

4. These Directions shall come into force with effect from October 01, 2025. <\/p>\n

<\/a>E. Applicability<\/p>\n

5. The provisions of these Directions shall apply to the project finance exposures of the following REs, hereinafter referred to as Lender and collectively as Lender(s), as the context may require:<\/p>\n