RBI Tightens Project Finance Rules, Proposes Stringent Measures | Science-Environment

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RBI Tightens Project Finance Rules, Proposes Stringent Measures | Science-Environment

RBI Tightens Project Finance Rules, Proposes Stringent Measures The Reserve Bank on Friday proposed tighter rules to govern lending to projects under implementation.The central bank's draft rules include a classification of the projects as per their phase and higher provisioning of up to 5 per cent during the construction phase, even if the asset is standard.It can be noted that in the last credit cycle, project loans were seen to have led to a…