Current Affairs - National - Discussion

The Reserve Bank of India (RBI) released the final “Project Finance Directions 2025” to create a structured regulatory framework for banks and other regulated entities in handling project finance, particularly in risk-heavy sectors such as infrastructure and commercial real estate. By setting revised, lower provisioning norms—1.25% for under-construction CRE and 1% for infrastructure—the RBI has aimed to reduce the capital burden on lenders while encouraging disciplined project completion. The directions also include a principle-based stress resolution framework and rationalised DCCO (Date of Commencement of Commercial Operations) extensions, giving banks flexibility while maintaining prudent risk management.