Mumbai, Feb 7 (IANS): The Reserve Bank of India on Friday notified norms for asset classification on date of commencement of commercial operations (DCCO) deferment for commercial realty projects.

Banks are allowed to revise DCCO up to a year under recast.

This is going to give a big boost to realty sector where commercial loans won't be downgraded, if delayed on genuine grounds.

On Thursday, the RBI gave relief to the realty sector where builders will have one more year to repay dues before they turn into an NPA. Banks may keep accounts standard only if the account continues to be serviced as per recast norms. The dispensation is subject to receipt of recast application before expiry of the original DCCO.

The RBI had decided to permit extension of DCCO of project loans for those projects which were stalled on reasons beyond the control of promoters, by another one year without downgrading the asset classification, in line with treatment accorded to other project loans for non-infrastructure sector. This was announced in the statement on Developmental and Regulatory Policies.