Accordingly, RBI in a circular issued to banks said that in case of infrastructure projects to be financed by the latter, the date of completion of the project should be clearly spelt out at the time of financial closure of the project. 

The Reserve Bank of India  made it clear that if the date of commencement of commercial production extends beyond a period of two years (as against the current norm of one year) after the date of completion of the project as originally envisaged, the account should be treated as sub-standard.

Legal reasons

The revised instructions will be effective from March 31, 2008. This revision by RBI was conceded on a representation made in regard to delays in completion of infrastructure projects for legal and other extraneous reasons. RBI then undertook a review of select projects and concluded that there is merit in this representation.