FIDC calls for RBI to retain 0.4% provision for infrastructure project loans instead of the proposed 5%.
The Finance Industry Development Council (FIDC) has called for a review of RBI's recent proposal to increase provisions that lenders must set aside against infrastructure project loans, suggesting the provision be retained at the current 0.4% level. The RBI proposed a 5% provision for banks and NBFCs at the construction phase of infrastructure projects, with FIDC arguing that this could be increased in the face of project delays.
June 11, 2024
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