Banks free to have separate caps for lending to power, renewables sectors: RBI to Centre

The RBI has written to the Centre saying it does not have any objection to banks categorising the power and renewable energy sectors separately for lending.

Speaking at the event CII Energising India, CEOs Dialogue on Power and Renewable Energy, Minister of State (Independent Charge) for Power and New and Renewable Energy, RK Singh, said: “The Ministry of Power has spoken with the RBI and Finance Ministry.

“The RBI has no objection to banks setting separate limits for renewable energy.” The move is meant to encourage banks to lend more and help developers gain access to easier finance.