{"id":34781,"date":"2025-06-27T12:17:48","date_gmt":"2025-06-27T06:47:48","guid":{"rendered":"https:\/\/edunovations.com\/currentaffairs\/?p=34781"},"modified":"2025-06-27T12:17:51","modified_gmt":"2025-06-27T06:47:51","slug":"rbi-project-finance-guidelines","status":"publish","type":"post","link":"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/","title":{"rendered":"RBI Project Finance Guidelines 2025: Major Relief for NBFCs and Infra Lenders Like PFC &amp; REC"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#RBI_project_finance_guidelines_2025_The_Reserve_Bank_eases_provisioning_for_NBFCs_and_lenders_boosting_infrastructure_financing_Learn_how_this_impacts_PFC_REC_and_upcoming_infra_loans\" >RBI project finance guidelines 2025: The Reserve Bank eases provisioning for NBFCs and lenders, boosting infrastructure financing. Learn how this impacts PFC, REC, and upcoming infra loans.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#RBIs_New_Project_Finance_Norms_A_Boon_for_NBFCs_and_Infrastructure_Lenders_%F0%9F%9A%A7\" >RBI\u2019s New Project Finance Norms: A Boon for NBFCs and Infrastructure Lenders \ud83d\udea7<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Eased_Provisioning_for_Under-Construction_Projects\" >Eased Provisioning for Under-Construction Projects<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Smooth_Transition_No_Retrospective_Application\" >Smooth Transition: No Retrospective Application<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Phased_Norms_for_Operational_Projects\" >Phased Norms for Operational Projects<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Rationalized_DCCO_Extensions\" >Rationalized DCCO Extensions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Market_Reaction_Surge_in_PSU-Lender_Stocks\" >Market Reaction: Surge in PSU-Lender Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Implications_for_NBFCs_and_Banks\" >Implications for NBFCs and Banks<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Why_This_News_Is_Important\" >Why This News Is Important<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Key_Reform_in_Infrastructure_Financing\" >Key Reform in Infrastructure Financing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Enhanced_NBFC_Bank_Credit_Flow\" >Enhanced NBFC &amp; Bank Credit Flow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Reduced_Risk_of_Credit_Crunch\" >Reduced Risk of Credit Crunch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Deal_with_Infrastructure_Delays_Realistically\" >Deal with Infrastructure Delays Realistically<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Macro-Economic_and_PSU_Boost\" >Macro-Economic and PSU Boost<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Historical_Context_The_Evolution_of_Project_Finance_Norms\" >Historical Context: The Evolution of Project Finance Norms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Key_Takeaways_from_RBIs_Project_Finance_Reform\" >Key Takeaways from RBI\u2019s Project Finance Reform<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#FAQs_Frequently_Asked_Questions\" >FAQs: Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#1_What_is_the_key_change_in_RBIs_new_project_finance_norms\" >1. What is the key change in RBI\u2019s new project finance norms?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#2_From_when_will_the_new_RBI_project_finance_guidelines_be_applicable\" >2. From when will the new RBI project finance guidelines be applicable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#3_Do_the_new_provisioning_norms_apply_to_existing_loans\" >3. Do the new provisioning norms apply to existing loans?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#4_How_has_the_market_responded_to_these_guidelines\" >4. How has the market responded to these guidelines?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#5_What_is_DCCO_and_what_is_its_new_extension_limit\" >5. What is DCCO and what is its new extension limit?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/rbi-project-finance-guidelines\/#Some_Important_Current_Affairs_Links\" >Some Important Current Affairs Links<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RBI_project_finance_guidelines_2025_The_Reserve_Bank_eases_provisioning_for_NBFCs_and_lenders_boosting_infrastructure_financing_Learn_how_this_impacts_PFC_REC_and_upcoming_infra_loans\"><\/span><strong>RBI project finance guidelines 2025<\/strong>: The Reserve Bank eases provisioning for NBFCs and lenders, boosting infrastructure financing. Learn how this impacts PFC, REC, and upcoming infra loans.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RBIs_New_Project_Finance_Norms_A_Boon_for_NBFCs_and_Infrastructure_Lenders_%F0%9F%9A%A7\"><\/span>RBI\u2019s New Project Finance Norms: A Boon for NBFCs and Infrastructure Lenders \ud83d\udea7<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eased_Provisioning_for_Under-Construction_Projects\"><\/span>Eased Provisioning for Under-Construction Projects<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On <strong>June 20, 2025<\/strong>, the Reserve Bank of India (RBI) issued its final <strong>Project Finance Directions, 2025<\/strong>, making them applicable to loans sanctioned from <strong>October 1, 2025<\/strong>. These guidelines significantly ease provisioning requirements:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>1% provision for under-construction infrastructure loans<\/strong>, down from an earlier draft of 5%<\/li>\n\n\n\n<li><strong>1.25% provision for under-construction commercial real estate (CRE)<\/strong> loans <\/li>\n<\/ul>\n\n\n\n<p>This substantial reduction from the draft norms signals a strategic move to relieve long-gestation projects from excessive capital strain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Smooth_Transition_No_Retrospective_Application\"><\/span>Smooth Transition: No Retrospective Application<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The norms <strong>exempt existing loans<\/strong>\u2014granted or financially closed before October 1\u2014from the new provisioning rules  This safeguards current portfolios and ensures a smooth phasing-in of the revised framework.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Phased_Norms_for_Operational_Projects\"><\/span>Phased Norms for Operational Projects<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Upon commissioning:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Infra loans<\/strong>: provisioning drops to <strong>0.4%<\/strong><\/li>\n\n\n\n<li><strong>CRE\u2013residential housing<\/strong>: <strong>0.75%<\/strong><\/li>\n\n\n\n<li><strong>CRE\u2013non-residential<\/strong>: <strong>1%<\/strong> <\/li>\n<\/ul>\n\n\n\n<p>This tiered structure aligns with actual risk exposure and operational status.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rationalized_DCCO_Extensions\"><\/span>Rationalized DCCO Extensions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The RBI introduces a sensible <strong>extension window for the Date of Commencement of Commercial Operations (DCCO)<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Up to 3 years<\/strong> for infrastructure projects<\/li>\n\n\n\n<li><strong>Up to 2 years<\/strong> for non-infra projects <\/li>\n<\/ul>\n\n\n\n<p>Lenders must maintain <strong>additional provisioning during deferment<\/strong>, which can be reversed post-commissioning.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_Reaction_Surge_in_PSU-Lender_Stocks\"><\/span>Market Reaction: Surge in PSU-Lender Stocks<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Stocks of <strong>Power Finance Corporation (PFC)<\/strong> and <strong>Rural Electrification Corporation (REC)<\/strong> rallied by approximately <strong>4\u20135%<\/strong>, with broader gains seen across infrastructure lenders like IREDA and HUDCO <br>Analysts noted the final rules strike a balance between prudence and flexibility, ensuring minimal immediate hit on profitability <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Implications_for_NBFCs_and_Banks\"><\/span>Implications for NBFCs and Banks<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The relaxed norms improve capital efficiency, allowing NBFCs and banks to free up funds previously tied to provisioning. This renewed capital can be channeled into new infrastructure projects\u2014crucial for India\u2019s development agenda.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\" id=\"RBI-project-finance-guidelines\"><img decoding=\"async\" src=\"https:\/\/cms-resources.groww.in\/uploads\/TAX_SLAB_2025_06_03_T112143_053_11zon_980594947c.jpg\" alt=\"RBI project finance guidelines\" title=\"RBI project finance guidelines\"\/><figcaption class=\"wp-element-caption\">RBI project finance guidelines<\/figcaption><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_This_News_Is_Important\"><\/span>Why This News Is Important<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Reform_in_Infrastructure_Financing\"><\/span>Key Reform in Infrastructure Financing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The RBI\u2019s forward-looking <strong>Project Finance Directions<\/strong> mark a significant shift from one-size-fits-all provisioning, acknowledging the unique risks of construction-phase lending. This tailored approach addresses a long-standing gap in India\u2019s prudential framework, making it more risk-sensitive.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Enhanced_NBFC_Bank_Credit_Flow\"><\/span>Enhanced NBFC &amp; Bank Credit Flow<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Crucially, the norms <strong>free up capital<\/strong> (1% vs. 5%) for lenders, enabling them to deploy more funds towards new infrastructure developments\u2014power, roads, renewable energy, and urban projects. For NBFCs that exited due to provisioning pressures, this is a compelling reason to re-engage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reduced_Risk_of_Credit_Crunch\"><\/span>Reduced Risk of Credit Crunch<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>By avoiding backloading of provisioning and ensuring non-retroactivity, the RBI minimizes the risk of sudden credit contraction. The phased transition helps shield lenders from shock, preserving other liquidity needs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Deal_with_Infrastructure_Delays_Realistically\"><\/span>Deal with Infrastructure Delays Realistically<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Banks and NBFCs frequently face delays in project commissioning due to bureaucratic or land acquisition issues. The structured DCCO extensions offer <strong>predictability and flexibility<\/strong>, while proportional provisioning aligns risk with reality.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Macro-Economic_and_PSU_Boost\"><\/span>Macro-Economic and PSU Boost<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In a broader sense, these reforms support India\u2019s <strong>national infrastructure growth<\/strong>, propelling job creation and economic momentum. PSU lenders like PFC, REC, IREDA, HUDCO, and IRFC drive vital development sectors and now have strengthened financial health.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Historical_Context_The_Evolution_of_Project_Finance_Norms\"><\/span>Historical Context: The Evolution of Project Finance Norms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pre-2015<\/strong>: Project loans were subject to general prudential norms, not reflecting their unique risk profiles during construction-phase execution.<\/li>\n\n\n\n<li><strong>May 2024 Draft<\/strong>: RBI\u2019s proposed framework demanded <strong>5% provisioning for under-construction projects<\/strong> and <strong>2.5% for operating ones<\/strong>, raising capital concerns \u26a0\ufe0f <\/li>\n\n\n\n<li><strong>Stakeholder Feedback<\/strong>: Major lenders and industry bodies pushed back, citing excessive capital burden and potential market disruption.<\/li>\n\n\n\n<li><strong>Final Directions (June 20, 2025)<\/strong>: Lowered provisioning to <strong>1% and 1.25%<\/strong>, introduced lenient DCCO norms, and excluded existing loans\u2014showing RBI\u2019s responsive and calibrated policy.<\/li>\n\n\n\n<li><strong>Implications Going Forward<\/strong>: Lenders can rebuild infrastructure financing capacity; NBFCs gain clarity, and market confidence is restored\u2014reflected in the PSU-banking rally.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Takeaways_from_RBIs_Project_Finance_Reform\"><\/span>Key Takeaways from RBI\u2019s Project Finance Reform<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>S.No<\/th><th>Key Takeaway<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td><strong>1% provisioning for under-construction infra projects<\/strong>, down from 5% draft <\/td><\/tr><tr><td>2<\/td><td><strong>1.25% provisioning for under-construction CRE<\/strong>, replacing earlier 5% demand<\/td><\/tr><tr><td>3<\/td><td>No retrospective application\u2014existing loans continue under old norms<\/td><\/tr><tr><td>4<\/td><td><strong>Extensions allowed for DCCO up to 3 years (infra), 2 years (non\u2011infra)<\/strong> with proportional provisioning<\/td><\/tr><tr><td>5<\/td><td><strong>Market response<\/strong>: PFC &amp; REC shares jumped 4\u20135%, indicating strong investor approval<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">RBI project finance guidelines<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_Frequently_Asked_Questions\"><\/span><strong>FAQs: Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_What_is_the_key_change_in_RBIs_new_project_finance_norms\"><\/span>1. What is the key change in RBI\u2019s new project finance norms?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The RBI has reduced the provisioning requirement for under-construction infrastructure loans from 5% (as per the draft guidelines) to 1% in the final norms, offering significant relief to lenders.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_From_when_will_the_new_RBI_project_finance_guidelines_be_applicable\"><\/span>2. From when will the new RBI project finance guidelines be applicable?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The new project finance norms will be applicable to loans sanctioned on or after <strong>October 1, 2025<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Do_the_new_provisioning_norms_apply_to_existing_loans\"><\/span>3. Do the new provisioning norms apply to existing loans?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>No, loans that were sanctioned or financially closed before <strong>October 1, 2025<\/strong>, will not be affected. The new rules apply prospectively.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_How_has_the_market_responded_to_these_guidelines\"><\/span>4. How has the market responded to these guidelines?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Public sector lenders like <strong>PFC<\/strong> and <strong>REC<\/strong> saw their stock prices rise by 4\u20135% due to the positive sentiment surrounding the eased provisioning burden.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_What_is_DCCO_and_what_is_its_new_extension_limit\"><\/span>5. What is DCCO and what is its new extension limit?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>DCCO stands for <strong>Date of Commencement of Commercial Operations<\/strong>. Under the new norms:<\/p>\n\n\n\n<p>Non-infrastructure projects can be delayed up to <strong>2 years<\/strong><br>\u2026without being reclassified as NPAs, although higher provisioning will apply during the extended period.<\/p>\n\n\n\n<p>Infrastructure projects can be delayed up to <strong>3 years<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Important_Current_Affairs_Links\"><\/span>Some Important Current Affairs Links<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/national\/\" target=\"_blank\" rel=\"noreferrer noopener\">State Current Affairs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--2\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/sports\/\" target=\"_blank\" rel=\"noreferrer noopener\">Sports Current Affairs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--3\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/international\/\" target=\"_blank\" rel=\"noreferrer noopener\">International Current Affairs<\/a><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/banking\/\" target=\"_blank\" rel=\"noreferrer noopener\">Banking Current Affairs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/railway\/\" target=\"_blank\" rel=\"noreferrer noopener\">Railways Current Affairs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/defence\/\" target=\"_blank\" rel=\"noreferrer noopener\">Defence Current Affairs<\/a><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--4\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs?newsmaticargs=custom&amp;posts=today\" target=\"_blank\" rel=\"noreferrer noopener\">Daily Current Affairs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--5\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairsinhindi\/\" target=\"_blank\" rel=\"noreferrer noopener\">Current Affairs In Hindi<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--6\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/news-and-notifications\/\" target=\"_blank\" rel=\"noreferrer noopener\">News and Notifications<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.edunovations.quiz\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" width=\"900\" height=\"150\" src=\"https:\/\/edunovations.com\/currentaffairs\/wp-content\/uploads\/2023\/03\/Banner-current-affairs-2-1.jpg\" alt=\"Download this App for Daily Current Affairs MCQ&#039;s\" class=\"wp-image-247\" title=\"\" srcset=\"https:\/\/edunovations.com\/currentaffairs\/wp-content\/uploads\/2023\/03\/Banner-current-affairs-2-1.jpg 900w, https:\/\/edunovations.com\/currentaffairs\/wp-content\/uploads\/2023\/03\/Banner-current-affairs-2-1-300x50.jpg 300w, https:\/\/edunovations.com\/currentaffairs\/wp-content\/uploads\/2023\/03\/Banner-current-affairs-2-1-768x128.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/a><figcaption class=\"wp-element-caption\">Download this App for Daily Current Affairs MCQ&#8217;s<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\" id=\"News-Website-Development-Company\"><a href=\"https:\/\/www.martindiainfotech.com\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" width=\"900\" height=\"150\" src=\"https:\/\/edunovations.com\/currentaffairs\/wp-content\/uploads\/2023\/04\/News-Website-Development-Company-Banner.png\" alt=\"News Website Development Company\" class=\"wp-image-438\" title=\"News Website Development Company\" srcset=\"https:\/\/edunovations.com\/currentaffairs\/wp-content\/uploads\/2023\/04\/News-Website-Development-Company-Banner.png 900w, 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Learn how this impacts PFC, REC, and upcoming infra loans. RBI\u2019s New Project Finance Norms: A Boon for NBFCs and Infrastructure Lenders \ud83d\udea7 Eased Provisioning for Under-Construction Projects On June 20, 2025, the Reserve Bank of India (RBI)&#8230;<\/p>\n","protected":false},"author":6,"featured_media":34806,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,14],"tags":[23961,23960,4847,267,23962,6883,8443,21378,23963,339,11286],"class_list":["post-34781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","category-banking","tag-cre-loans","tag-dcco-extension","tag-financial-reforms","tag-indian-economy","tag-infrastructure-lending","tag-nbfcs","tag-pfc","tag-project-finance","tag-psu-stocks","tag-rbi","tag-rec"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/34781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/comments?post=34781"}],"version-history":[{"count":2,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/34781\/revisions"}],"predecessor-version":[{"id":34807,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/34781\/revisions\/34807"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/media\/34806"}],"wp:attachment":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/media?parent=34781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/categories?post=34781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/tags?post=34781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}