RBI's Draft Project Finance Rules Get Tweaked: IBA and Govt Suggest Changes
2025-02-07
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The Reserve Bank of India's draft project finance rules have been tweaked by the Indian Banks' Association and the government, according to sources. The draft rules state that if the net present value of a project decreases, potentially leading to a credit event, banks will be required to reassess the project. This move aims to ensure that lenders are better equipped to manage risk and make informed decisions. With the implementation of these revised rules, the project finance landscape in India is expected to undergo significant changes, impacting banks, project developers, and the overall economy, including key areas like infrastructure development and credit risk management.
