RBI to Address Industry Concerns in Final Project Loan Guidelines

The Reserve Bank of India plans to address industry concerns in its final project loan guidelines. RBI Executive Director R Lakshmi Kanth Rao indicated that the bank is considering feedback and highlighting the need for NBFCs to tighten their compliance systems.

The Reserve Bank of India (RBI) aims to address the industry's concerns in its forthcoming final project loan guidelines, a senior official confirmed on Friday.

Speaking at an event organised by Assocham, RBI Executive Director R Lakshmi Kanth Rao acknowledged that the central bank is evaluating feedback received on the draft guidelines issued on May 24. He noted the complexities inherent in project finance and stated that the guidelines aim to mitigate underlying risks.

The industry has expressed particular concern over the proposed provisioning requirement, which suggests that lenders set aside 5 per cent. Rao emphasized the need for non-banking financial companies (NBFCs) to strengthen their compliance frameworks in light of increasing regulatory requirements.

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