RBI Issues Fifth Amendment to Commercial Banks Credit Facilities Directions, 2026

Last updated: 17 July 2026

Notice Date : 15 July 2026

Quick Summary

The Reserve Bank of India has issued the Fifth Amendment to the Commercial Banks Credit Facilities Directions, 2026, effective immediately. This amendment provides clarifications on how banks can finance projects. Specifically, it allows banks to finance independent, viable units within a larger project as separate projects if each unit can be appraised for standalone viability. Additionally, for electricity generation projects that include transmission infrastructure, the right of way for transmission can be determined according to a specific sub-paragraph.

RBI/2026-27/181
DOR.STR.REC.154/21-04-048/2026-27

July 15, 2026

Reserve Bank of India (Commercial Banks – Credit Facilities) Fifth Amendment Directions, 2026

Please refer to Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025 (hereinafter referred to as ‘the Directions’).

2. In exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

3. These Amendment Directions modify the Directions as under:

(i) In paragraph 78, an Explanation shall be added as under:

Explanation: Where it is possible for a project to be operationalised as multiple independent viable units, a bank may at its discretion finance such independent units as separate projects with their own financial closure, provided each unit is appraised ex-ante for standalone viability.

(ii) In paragraph 80, an Explanation shall be added as under:

Explanation: For the purpose of this paragraph, for projects in electricity generation where the project scope involves both generation and transmission (evacuation infrastructure), the right of way requirement for transmission may be determined as per sub-paragraph (3).

4. The above amendment would come into force with immediate effect.

(Vaibhav Chaturvedi)
Chief General Manager

The amendment clarifies how banks can finance projects, particularly regarding the financing of independent units within a larger project and the determination of right of way for transmission in electricity generation projects.

The amendment comes into force with immediate effect from July 15, 2026.

Yes, a bank may finance independent, viable units of a project as separate projects if each unit is appraised for standalone viability.

For electricity generation projects involving both generation and transmission, the right of way for transmission may be determined as per sub-paragraph (3) of the relevant paragraph.

The powers conferred by sections 21 and 35A of the Banking Regulation Act, 1949 are being exercised for this amendment.

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Notification No : 2026-27/181
Published in Investments & Personal Finance
Source : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13559&Mode=0

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