Indian lenders are set to appeal against a central bank proposal to tighten rules for infrastructure project loans. The Indian Banks Association (IBA) is gathering inputs and will write to the central bank, opposing the imposition of higher provisions for under-construction projects. The central bank proposed that banks set aside a provision of 5% of the loan amount for projects at the construction phase, which can be reduced to 2.5% when the project becomes operational and 1% when a certain level of cash flow is achieved.