RBI relaxes provisioning guidelines for banks
Mumbai: The Reserve Bank of India (RBI) on Thursday released the final guidelines for project finance, giving banks relief by significantly lowering the provisioning requirements compared to what was proposed earlier.
These new norms will be applicable from October 1, 2025.
Under the final rules, banks will now have to set aside a general provision of 1.25 per cent for loans to Commercial Real Estate (CRE) projects during the construction phase.For Commercial Real Estate – Residential Housing (CRE-RH) projects, the provision has been set at 1 per cent.
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