Source: Reserve Bank of India
March 17, 2020
All Scheduled Commercial Banks
Madam / Dear Sir,
Issue of Long Term Bonds by Banks – Financing of Infrastructure and Affordable Housing
Please refer to the circular DBOD.BP.BC.No.25/08.12.014/2014-15 dated July 15, 2014 and subsequent circulars on the above subject. Also refer to the circular DBR.BP.BC.No.42/08.12.014/2016-17 dated December 1, 2016 advising that for the purpose of definition of ‘Infrastructure Lending’, banks and select All India Term-Lending and Refinancing Institutions may be guided by the Gazette Notifications issued by the Department of Economic Affairs, Ministry of Finance, Government of India, from time to time.
2. For the purpose of circular dated July 15, 2014 mentioned above, ‘Infrastructure Sub-sectors’ and ‘affordable housing’ have been defined under paragraphs 2(i) and 2(ii) of the Annex therein. Affordable housing1 has since been included in the harmonised master list (HML) of infrastructure subsectors issued vide gazette notification dated August 13, 2018. For lending to infrastructure sector, banks/FIs shall continue to follow the definition of affordable housing projects as per the definition in the HML, as amended from time to time.
3. On account of inclusion of affordable housing under the HML, it has now been decided to align the definition of lending to affordable housing under the above-mentioned circular dated July 15, 2014 with the definition provided in the HML of infrastructure subsectors. Accordingly, for the purpose of issue of long terms bonds, it is advised as under:
4. All other instructions on issue of long term bonds and lending to infrastructure sector remain unchanged.