Module: General Practice
Q38: According to the RBI (Project Finance) Directions, 2025, a project loan for an Infrastructure project can retain its "Standard Asset" classification if the DCCO is deferred due to reasons beyond the promoter's control (exogenous reasons), provided the deferment does not exceed:
✅ Correct Answer: C
🎯 Quick Answer:
For Infrastructure projects, the deferment can be up to 3 years from the original DCCO while retaining Standard status.Structural Breakdown: 1. Infrastructure Projects: Max deferment of 3 years.
2. Non-Infrastructure Projects (including CRE): Max deferment of 2 years (reduced/harmonized in 2025 norms). 3. Condition: The account must otherwise be standard, and the revised repayment schedule must be viable.
Causal Reasoning: Infrastructure projects have long gestation periods and high public utility; hence, the regulator allows a longer leash (3 years) compared to commercial projects (2 years) before classifying them as stressed.