UP-RERA Tightens Banking Rules for Real Estate Projects

Dated on: Friday 22nd May 2026

UP-RERA has introduced new banking regulations for RERA-registered real estate projects to enhance transparency and protect homebuyers’ investments. Under the revised framework, developers must follow a mandatory three-account system along with stricter fund withdrawal and monitoring procedures. The authority has also directed banks to ensure project funds are used only for construction and land-related expenses, preventing misuse or diversion of money. Quarterly financial disclosures will now be required to improve accountability. Officials believe these measures will strengthen financial discipline in the real estate sector, reduce project delays, and boost buyer confidence by ensuring safer and more transparent management of project finances.