New Delhi, June 19 -- The Reserve Bank of India (RBI) on Wednesday issued the final Reserve Bank of India (Project Finance) Directions, 2025 which lays down the comprehensive framework for income recognition, asset classification, and provisioning norms for project loans under implementation.

As per the Central Bank, these new guidelines will come into effect from October 1 current year.

The directions follow the RBI draft guidelines on 'Prudential Framework for Income Recognition, Asset Classification and Provisioning pertaining to Advances - Projects Under Implementation' on May 03, 2024, for stakeholder comments.

The draft guidelines proposed an enabling framework for the regulated entities (REs) for financing project loans, while a...