Under the scheme also popularly called the 5/25 scheme, banks can, for example, lend for a 25 year project with an option to rollover the loan every five year. Conclusion 27. Let me conclude by trying to dispel some wrong notions which sometimes lead to criticism of RBI’s policies on bank finance to the infrastructure sector.
As I mentioned above, commercial banks have always been a large source of finance for the sector. It must be understood that the macroeconomic policies do play a very limited role in flow of funds to specific sectors. RBI’s monetary and liquidity measures have an overarching objective of managing the inflation expectations and liquidity conditions in the market.