September 20, 2006
All Commercial Banks
(excluding RRBs)
Dear Sir,
Banks' exposure to entities for setting up Special
Economic Zones (SEZs) / Acquisition of units in SEZs
Keeping in view the current market
conditions, it has been decided that the exposure of banks to entities for setting
up Special Economic Zones (SEZs) or for acquisition of units in SEZs which includes
real estate would be treated as exposure to commercial real estate sector with
immediate effect and banks would have to make provisions as also assign appropriate
risk weights for such exposures as per the existing guidelines.
Yours faithfully,
(Prashant Saran)
Chief General Manager-in-Charge