%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(3).png "Final project finance norms have been eased by RBI")
🧾 Key Highlights:
a) 0.4%
b) 1%
c) 1.25%
d) 5%
Answer: b) The provisioning for under-construction projects has been reduced from 5% (draft norms) to 1%. This checks knowledge of changes in RBI’s risk-weighting policies.
- Under-construction projects: Standard asset provisioning reduced to 1% (from 5% in the draft norms).
- Commercial Real Estate (CRE): Slightly higher provisioning at 1.25%.
- Operational phase: Provisioning drops to 0.4% for general projects, 0.75% for CRE–Residential Housing, and 1% for CRE.
- DCCO Delays: If the Date of Commencement of Commercial Operations is delayed, provisioning will increase incrementally each quarter.
- Grandfathering Clause: Existing projects with financial closure before Oct 1, 2025, will continue under current norms.
- Flexibility: DCCO extension allowed up to 3 years for infrastructure and 2 years for non-infra projects.
Question:
Q.1 What is the new standard asset provisioning requirement for under-construction projects as per RBI’s 2025 norms?a) 0.4%
b) 1%
c) 1.25%
d) 5%
Answer: b) The provisioning for under-construction projects has been reduced from 5% (draft norms) to 1%. This checks knowledge of changes in RBI’s risk-weighting policies.
