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Lower risk rules for NBFC loans to free up 40k cr
The New Indian Express Madurai
|February 27, 2025
The central bank lowered the risk weightage on banks' exposure to non-banks and micro-lenders from 125% to 100%
The Reserve Bank's latest decision to rollback the additional 25 percentage points risk weights to 125% on banks' exposure to non-banks and micro-lenders will free up ₹40,000 crore of capital for the banks. This capital can be used to lend an additional ₹4 lakh crore to a credit-starved economy, say analysts.
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