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

Last updated: 17 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/2026-27/181DOR.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.
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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.

 
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