Regulator proposes tighter guidelines on infra funding
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Mumbai: The Reserve Bank of India (RBI) has proposed to overhaul rules governing project lending to enable the flow of funds to infrastructure and, at the same time, ensure that the risk metrics are under control. It has stipulated minimum exposure of banks in consortium lending and prescribed norms to defile credit events. The regulator issued draft guidelines pertaining to the prudential framework for financing projects in the infrastructure, non-infrastructure and commercial real estate sectors. It said the guidelines lay down the regulatory dispensations regarding the date of commencement of commercial operations (DCCO) of such projects. In the case of projects financed under consortium arrangements, where the aggregate exposure borrowing is up to Rs 1,500 crore, each lender should have a minimum exposure of 10%. If the aggregate exposure is more than '1,500 crore, individual exposure should not be less than 5% or '150 crore, ...