While the update concerns commercial bank credit facilities, it focuses on project financing structures and prudential lending standards rather than payment services or payment-related credit products.
Low confidence — requires human review. The update addresses general commercial credit policy with no explicit connection to payment-linked lending, merchant cash advances, or payment platform lending.
Specialism
This update concerns commercial bank credit facility directions for project financing in India, which falls outside the scope of payment services regulation and does not directly address payment firm compliance.
While the amendment references prudential standards for credit appraisal and viability assessment, it applies to general commercial banking credit facilities rather than payment service providers or payment-specific prudential requirements.
2026-07-16 08:17:43·pthandapani@vixio.com
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Notifications - Reserve Bank of India
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TITLE: India's Reserve Bank Amends Commercial Bank Credit Facilities Directions for Project Financing
BODY:
On July 15, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Commercial Banks – Credit Facilities) Fifth Amendment Directions, 2026, modifying the Commercial Banks – Credit Facilities Directions, 2025. The RBI exercised powers conferred under sections 21 and 35A of the Banking Regulation Act, 1949 to implement these amendments.
The amendment introduces two key modifications to the existing directions. First, paragraph 78 now includes an explanation permitting banks to finance independent viable units of a project as separate projects with their own financial closure, provided each unit is appraised ex-ante for standalone viability. This allows banks discretion in structuring project financing where a project can be operationalised as multiple independent viable units.
Second, paragraph 80 includes an explanation addressing electricity generation projects that involve both generation and transmission components. The amendment clarifies that for such projects, the right of way requirement for transmission may be determined according to the provisions in sub-paragraph (3). This provides specific guidance for infrastructure projects combining generation and evacuation infrastructure.
These amendments apply to commercial banks extending credit facilities under the directions. The changes come into force with immediate effect as of July 15, 2026. The modifications aim to provide greater flexibility in project financing structures while maintaining prudential standards for appraisal and viability assessment. Banks must ensure that any independent units financed separately meet standalone viability criteria to mitigate credit risk.
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Notifications ( 450 kb ) Reserve Bank of India (Commercial Banks – Credit Facilities) Fifth Amendment Directions, 2026 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 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page