The Reserve Bank of India has amended its 2025 directions on credit facilities for urban cooperative banks, adding two clarifications on how certain project loans may be treated. The changes address financing of projects that can be operationalised as multiple independent viable units and the right of way requirement for electricity generation projects that also include transmission, or evacuation, infrastructure. Under the amendment, a bank may, at its discretion, finance independent viable units within a larger project as separate projects with their own financial closure, provided each unit is appraised in advance for standalone viability. The amendment also clarifies that, for electricity generation projects whose scope includes both generation and transmission, the right of way requirement for the transmission component may be determined in line with sub-paragraph (3). The changes took effect immediately.
Reserve Bank of India2026-07-15
Reserve Bank of India amends urban cooperative bank credit rules for multi unit project financing and electricity transmission right of way
The Reserve Bank of India has amended its urban cooperative bank credit directions to clarify treatment of certain project loans. Banks may finance independent viable units within a larger project as separate projects if each is appraised for standalone viability, and the right of way test for electricity projects that include transmission may be determined under sub-paragraph (3). The amendment took effect immediately.