IBA and Govt Suggest Changes to RBI's Project Finance Draft Rules: Sources
2025-02-07
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The Reserve Bank of India's draft project finance rules have undergone scrutiny, with the Indian Banks' Association and government suggesting tweaks. According to the draft, a project's net present value decrease may trigger a credit event, prompting banks to reassess project viability. This move aims to enhance risk management and lending practices in the project finance sector, incorporating key aspects of credit risk management and financial stability. With the proposed changes, the rules are expected to bolster the banking system's resilience. Key stakeholders are closely monitoring the developments, as they may impact the project finance landscape. The revised rules are anticipated to promote more prudent lending practices.
