RERA holds meet on bank norms for realty projects

Lucknow: The UP Real Estate Regulatory Authority (UP RERA) organised an awareness meeting at the Bank of Baroda regional office in Gomtinagar to brief banks on revised regulations governing RERA-registered project accounts.

The session aimed to ensure compliance with the updated framework designed to improve financial discipline and transparency in the real estate sector.

Officials explained the newly mandated three-account system — collection account, separate account, and transaction account.

Officials said that 70% of homebuyer collections will now be automatically transferred to the separate account, strictly reserved for land and construction expenses. Withdrawals require certification from an architect, engineer and chartered accountant, ensuring accountability at every stage.

UP RERA also directed banks to restrict facilities such as cheque books, debit cards and transaction-enabled net banking facilities for project accounts and clarified that no operations can begin in newly opened accounts without final approval. Lien creation on project accounts has been prohibited to safeguard buyer funds.

Additionally, quarterly financial disclosures have been made mandatory, while interest on NBFC loans has been capped at SBI-MCLR rates. Authorities emphasised that these reforms aim to strengthen transparency, prevent misuse of funds, and protect homebuyers’ interests while ensuring timely project completion.