The Reserve Bank of India on Thursday eased guidelines for project finance loans extended by banks and non-bank lenders. The new norms, which come into effect from October 1, 2025, require that under construction projects carry a 1% standard asset provisioning, compared with the 5% requirement proposed in the draft norms released in May 2024. According to the final norms, the standard asset provisioning, compared with the 5% requirement proposed in the draft norms released in May 2024. According to the final norms, the standard asset provisions shall rise for each quarter of deferment of the date of commencement of commercial operations.

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