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Policy Initiatives: RBI relaxes lending norms for infrastructure projects

	May 12, 2008

To encourage banks to earmark more funds to infrastructure sector projects at competitive rates, the Reserve Bank of India on Thursday last relaxed the lending norms for such projects. In a notification RBI said bank loans to infrastructure projects would be treated as sub-standard only if commercial production is delayed by more than two years over the date originally envisaged, instead of the present norm of one year. "If the date of commercial production extends beyond a period of two ye ...