November 26, 2013 9:27 AM

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RBI widens definition of infra lending in bid to expedite projects

RBI has widened the definition of infrastructure lending. In a notification issued from Mumbai on Monday, RBI has said that new sub-sectors that have been added in the list will include hotels with project cost of more than 200 crore rupees bring built anywhere in India and of any star rating. The list will also include convention centres with project cost of more than Rs 300 crore. The decision comes after the Finance Ministry said it favours relaxation of lending rules for infrastructure projects in order to expedite them. Apart from suggesting changes in the rules for infrastructure financing, Finance Ministry has also written to RBI regarding the treatment of non-performing loans to this sector.

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