RBI extends DCCO of project loans for commercial real estate

NEW DELHI: Reserve Bank of India (RBI) on Thursday extended the date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond the control of promoters, by another one year without downgrading the asset classification.

The decision is in line with treatment accorded to other project loans for non-infrastructure sector. This would also complement the initiatives taken by the Government of India in the real estate sector, the central bank said.

The detailed instructions will be issued shortly, the apex bank said.

In November 2019, the central government created an category-II Alternative Investments Fund (AIF) of about Rs 25,000 crore to start with. In this, about Rs 10,000 crore was to be given by the government.

The central bank has also proposed to place the draft revised regulations for housing finance companies (HFCs) on the bank’s website by the end of Februry 2020, for public comments.

In August 2019, regulation of HFCs were transfered from National Housing Bank (NHB) to RBI. The bank had then said that it will carry out a review of the extant regulatory framework applicable to HFCs and issue revised regulations in due course, and till such time HFCs shall continue to comply with the directions and instructions issued by NHB.

Source: https://realty.economictimes.indiatimes.com/news/industry/rbi-extends-dcco-of-project-loans-for-commercial-real-estate/73984056

February 06, 2020

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