Overview

• The RBI’s final directions, effective October 1, 2025, cut standard asset provisioning for under-construction infrastructure projects from 5% to 1% and to 1.25% for commercial real estate developments.
• Lenders can now extend project completion deadlines by up to three years for infrastructure ventures and two years for non-infrastructure loans under revised DCCO rules.
• Exposure floors require individual lenders to hold at least 10% of aggregate financing in deals up to ₹1,500 crore and a minimum of 5% or ₹150 crore in larger financings.
• Banks and NBFCs must monitor project performance continuously and trigger resolution plans at early signs of stress during construction phases.
• State-owned financiers such as Power Finance Corp, REC Ltd and IREDA saw share prices jump after brokerages highlighted the move’s potential to unlock capital and boost long-term infrastructure financing.