RBI Update - Reserve Bank of India (Commercial Banks – Credit Facilities) Fifth Amendment Directions, 2026

The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Credit Facilities) Fifth Amendment Directions, 2026, effective immediately, amending the Commercial Banks – Credit Facilities Directions, 2025. The amendment introduces an explanation to paragraph 78 clarifying that where a project can be operationalised as multiple independent and viable units, banks may, at their discretion, finance such units as separate projects with independent financial closure, subject to each unit being appraised beforehand for its standalone viability. Further, an explanation has been inserted in paragraph 80 to clarify that, for electricity generation projects involving both generation facilities and associated transmission (evacuation) infrastructure, the right of way requirement for the transmission component may be determined in accordance with sub-paragraph (3).