Question
As per RBI draft prudential guidelines for Advances -
Projects Under Implementation, Directions, 2024, the original or revised repayment tenor, including the moratorium period, if any, shall not exceed ________ of the economic life of the project.Solution
The original or revised repayment tenor, including the moratorium period, if any, shall not exceed 85% of the economic life of the project. The economic life of a project is the time period when an asset/project is expected to be useful and generate more income than it costs to maintain. It's also known as the useful life or depreciable life of the project/asset.
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