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

Last updated: 17 July 2026

Save Share

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/2026-27/181DOR.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 i

Daily Limit Reached

You have reached your daily limit of 2 Free Notice & Circular

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Notice & Circular Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

FAQ :

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.

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

122 Views Comment Share Investments & Personal Finance Report

Notification posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments