RBI master-direction · 28 Nov 2025
RBI/DOR/2025-26/154 DOR.CRE.REC.73/07-01-001/2025-26 November 28, 2025 Previous Versions Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025 (Updated as on July 01, 2026) Table of Contents Chapter I - Preliminary A. Short Title and Commencement B. Applicability C. Definitions Chapter II - Role…
RBI/DOR/2025-26/154 DOR.CRE.REC.73/07-01-001/2025-26 November 28, 2025 Previous Versions Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025 (Updated as on July 01, 2026)
Table of Contents
Chapter I - Preliminary A. Short Title and Commencement B. Applicability C. Definitions Chapter II - Role of The Board Chapter IIA: Credit Facilities Linked to Specific Payment Instruments Chapter III - Digital Lending Guidelines A. General Requirements for bank-LSP Arrangements B. Conduct and Customer Protection Requirements C. Technology and Data Requirement D. Reporting of Credit Information and DLAs E. Loss sharing arrangement in case of default F. General Provisions Chapter IV - Lending against Gold and Silver Collateral A. General Provisions B. Restrictions and Ceilings C. Valuation and Assaying of Gold and Silver collateral D. Loan to Value Ratio (LTV) E. Other Provisions Chapter V - [Deleted] Chapter VA - Gold Metal Loans (GML) A. Introduction B. Eligible Banks C. General Instructions D. Repayment of GML E. Disclosures Chapter VI - Microfinance A. Definition of Microfinance B. Assessment of Household Income C. Limit on Loan Repayment Obligations of a Household D. Other provisions Chapter VII - Project Finance A. Phases of Projects B. Prudential Conditions Related to Sanction C. Prudential Conditions Related to Disbursement and Monitoring D. Other Provisions Chapter VIII - Credit Facilities to Real Estate Sector A. Loans and advances to Real Estate Sector B. Housing Finance C. Loans and advances to Commercial Real Estate (CRE) D. Simultaneous classification of CRE into other regulatory categories E. Loans and Advances to Commercial Real Estate - Residential Housing Chapter IX - Infrastructure Financing A. Criteria for Financing B. Types of Financing by Banks C. Appraisal D. Prudential requirements Chapter X - Discounting / Rediscounting of Bills Chapter XI - Acquisition Finance A. ***** B. ***** C. ***** D. Board approved policy E. Eligible Entities and Conditions Chapter XII - Credit Facilities to Overseas Joint Ventures (JV) / Wholly Owned Subsidiaries Abroad and overseas Step-down Subsidiaries of Indian Companies Chapter XIII - Loans Against Financial Assets A. ***** B. ***** C. ***** D. ***** E. ***** F. ***** G. ***** H. ***** I. ***** J. ***** K. ***** L. ***** M. Advances against Fixed Deposit Receipts (FDRs) N. ***** O. Grant of Loans for acquisition of / investing in Small Saving Instruments P. ***** Q. Loans against Eligible Securities Chapter XIII A – Credit Facilities to Capital Market Intermediaries (CMIs) A. Scope B. General Conditions C. Permissible and Prohibited Credit Facilities D. Security Coverage Chapter XIV - Finance to Non-Banking Financial Companies (NBFCs) A. Finance to NBFCs registered with RBI B. Finance to NBFCs not requiring Registration C. Activities not eligible for Bank Credit D. Finance to Factoring Companies E. Other Prohibitions on Finance to NBFCs F. Other Instructions Chapter XV - Export Credit A. Rupee Pre-shipment Credit / Packing Credit B. Rupee Pre-shipment Credit to specific sectors / segments C. Rupee Post-Shipment Export Credit D. Deemed Exports - Rupee Export Credit E. Interest on Rupee Export Credit F. Pre-shipment Credit in Foreign Currency (PCFC) G. Post-shipment Credit in Foreign Currency: Rediscounting of Export Bills Abroad Scheme (EBR) H. Gold Card Scheme for exporters I. 'On line' credit to exporters J. Other Provisions K. Special Measures Chapter XVI - Non-Fund Based (NFB) Credit Facilities A. General Conditions B. Guarantees C. Usage of electronic-Guarantee D. Guarantee favouring another RE E. Co-acceptances F. Guarantee and related business involving overseas current or capital account transaction G. Guarantees on behalf of Stock / Commodity Brokers H. Partial Credit Enhancement – Salient Features I. Additional conditions for providing PCE to bonds of NBFCs and HFCs J. Other Aspects of PCE Chapter XVII - Miscellaneous Provisions A. Bank finance to Government owned entities B. Loans and advances to Micro, Small & Medium Enterprises (MSMEs) C. Bridge Loans against Receivable from Government Chapter XVIII - Repeal and other provisions A. Repeal and saving B. Application of other laws not barred C. Interpretations Annex - I Annex - II Annex - III Annex - IV Annex - V
Introduction
Reserve Bank of India (Reserve Bank) is statutorily mandated to operate the credit system of the country to its advantage. In pursuit of this mandate, the Reserve Bank encourages innovation in the financial systems, credit products and delivery mechanisms while ensuring orderly growth, financial stability and the protection of depositors’ and borrowers’ interest. With the progressive deregulation of bank credit, prudential norms primarily serve as regulatory safeguards. These norms, issued from time to time, provide guidance to regulated entities (REs) on the design and delivery of credit-related products and services. These Directions consolidate the instructions issued to commercial banks on credit facilities.
Accordingly, in exercise of powers conferred by Sections 21, and 35A of the Banking Regulation Act, 1949, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues these Directions hereinafter specified.
Chapter I - Preliminary
A. Short Title and Commencement
These Directions shall be called the Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025.
These Directions shall come into effect immediately upon its issuance, unless indicated otherwise.
B. Applicability
For the purpose of these Directions, ‘Commercial Banks’ means banking companies (other than Small Finance Banks, Payment Banks, and Local Area Banks), corresponding new banks, and the State Bank of India, as defined respectively under clauses (c), (da), and (nc) of Section 5 of the Banking Regulation Act, 1949.
C. Definitions
(1) For the purpose of these Directions, following definitions shall apply:
1[(ia) ‘Acquisition Finance’ shall mean a financial facility or assistance provided to an eligible borrower entity for the purpose of acquiring control in a target company (including through a scheme of amalgamation or merger). Such funding may also involve refinancing of existing debt of the target company if the refinancing is integral to the acquisition finance.]
2[(ib)] ‘Actual Date of Commencement of Commercial Operations (actual DCCO)’ means the date on which the project is put to commercial use and completion certificate / provisional completion certificate / occupancy certificate (in case of CRE and CRE-RH projects) or its equivalent is issued to the concessionaire / project developer / promoter.
(ii) ‘Annual Percentage Rate’ (APR) means APR as defined under Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Directions, 2025.
(iii) ‘Appointed Date’ means the date, as defined in the concession agreement entered into between the concessionaire and the concession granting authority, on which the concession agreement comes into force in accordance with the terms outlined therein (applicable only in the case of infrastructure projects under Public Private Partnership (PPP) model).
(iv) ‘Beneficiary’ means the party in whose favour the NFB facility is issued by the bank.
3[(iva) ‘Bridge Finance’ shall mean financing a borrower for an interim period, not exceeding one year, for a legitimate business purpose where the borrower has a firm plan and capability to repay such loans by raising financial resources either through issuance of equity, debt or hybrid instruments or by divestiture/hive-off of a part of existing business/assets within the interim period.]
(v) ‘Bullet Repayment Loans’ means loans where both principal and interest are due for payment at the maturity of the loan.
4[(va) ‘Capital Market Intermediaries (CMIs)’ shall mean regulated entities undertaking trade execution and market infrastructure services in capital markets, including broking, clearing, custody, market making or other incidental services.
Provided that CMIs shall not include Standalone Primary Dealers and Qualified Central Counterparty (QCCPs).]
