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Commercial banks are planning to make a representation to the finance ministry and the Reserve Bank of India (RBI) to seek an exclusion for smaller projects, particularly those undertaken by micro, small and medium enterprises (MSMEs), from the new project finance norms that prescribe a higher general provisioning for lenders during the construction phase.
Lenders are pitching for a threshold of ₹100 crore of aggregate exposure for the higher provisioning norms to kick in.
On June 19, the RBI announced the final norms for project finance, prescribing a one per cent general provision for all projects, as compared to 0.4
