What is the sinking or reserve fund in a service charge?
The sinking fund, also called the reserve fund, is a mandatory part of the RERA-approved budget where money is set aside each year for major future capital works: lift replacement, facade repairs, repainting, fire-system upgrades and roof works. It typically accounts for around 5-10% of the budget and builds up in a separate account so owners avoid sudden large one-off bills.
Rules and eligibility criteria change — confirm the current position with the relevant authority before acting. This is general information, not legal advice.
Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.
