RBI Unveils Unified Project Finance Framework for 2025
The Reserve Bank of India announced norms establishing a harmonized project finance framework for banks and NBFCs, effective from October 2025. The new regulations address DCCO changes and provide a principle-based regime for stress resolution across infrastructure and non-infrastructure sectors, with exposure limits specified for lenders.

- Country:
- India
The Reserve Bank of India (RBI) has unveiled new guidelines aimed at providing a harmonized framework for funding infrastructure and non-infrastructure projects within the banking sector. These regulations, collectively known as the Reserve Bank of India (Project Finance) Directions, 2025, focus on addressing changes in the date of commencement of commercial operations (DCCO) and revising the regulatory treatment of such projects.
The new directives advocate for a principle-based regime to resolve stress in project finance exposures and standardize practices across regulated entities. They introduce rationalized DCCO extension allowances, limiting them to three years for infrastructure projects and two years for non-infrastructure sectors. Projects are categorized into design, construction, and operational phases for the application of the latest prudential guidelines.
Additionally, the RBI has set forth exposure limits for lenders, varying based on the aggregate exposure of the project. The guidelines emphasize the importance of securing all necessary approvals pre-financial closure and outline procedures for resolving stress and recognizing income or loss. These directions will come into effect from October 1, 2025, following comprehensive consultations with stakeholders including banks, NBFCs, and government entities.
(With inputs from agencies.)