What changed
RBI expanded the harmonised master list of infrastructure sub-sectors for lending by adding three new categories: Capital Dredging under Ports, Slurry Pipelines under Water & Sanitation, and Telecommunication & Telecom Services under Communication. This update follows Government gazette notifications dated April 5 and May 9, 2013, and supersedes the earlier list from March 27, 2012.
What it means for you
Banks can now extend infrastructure lending classification to loans for capital dredging projects, slurry pipelines, and telecom services, which may qualify for preferential regulatory treatment such as lower risk weights or priority sector targets. This encourages lending to these sectors, potentially boosting port modernisation, pipeline infrastructure, and telecom network expansion.
What you must do
- Update internal credit policies to include the three new sub-sectors under infrastructure lending classification.
- Train credit officers to identify and classify loans for Capital Dredging, Slurry Pipelines, and Telecommunication & Telecom Services as infrastructure lending.
- Review existing loan portfolios to reclassify eligible exposures under the expanded definition for regulatory reporting.
- Ensure compliance with the updated master list when submitting infrastructure lending data to RBI.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), All India Term-Lending and Refinancing Institutions (EXIM Bank, NABARD, NHB, SIDBI), Borrowers in port dredging, slurry pipeline, and telecom sectors
What are the three new sub-sectors added to infrastructure lending?
The three new sub-sectors are Capital Dredging under Ports, Slurry Pipelines under Water & Sanitation, and Telecommunication & Telecom Services under Communication.
Does this circular change the priority sector lending norms?
No, this circular only updates the definition of infrastructure lending for classification purposes. It does not alter priority sector lending targets or norms.
Are loans to telecom towers now covered under infrastructure lending?
Telecommunication towers were already included in the earlier list. The new addition is 'Telecommunication & Telecom Services', which covers services like broadband/internet over optic fibre networks.