New Delhi, July 31 -- The Centre has urged banks and financial institutions to accelerate lending for infrastructure projects in order to sustain economic growth momentum, as credit growth shows signs of tapering, two people aware of the matter said.

In recent meetings with top executives of lenders, finance ministry officials advised lenders not to hold back funding for viable infrastructure projects, particularly those with shorter gestation periods and quicker commissioning timelines, so long as they comply with the Reserve Bank of India (Project Finance) Directions, 2025, the people said.

The RBI's new guidelines, effective from 1 October 2025, require strict adherence to project fundamentals, including financial closure, appointed ...