RBI : RBI has decided to restore risk weights on Scheduled Commercial Banks’ (SCBs) exposures to NBFCs based on external ratings, reversing the 25-percentage point increase imposed in November 2023 for risk weights below 100%. The revised framework aligns with Paragraph 5.8.1 of the Basel III Capital Regulations Master Circular. The above instructions shall come into effect from April 01, 2025, while all other regulatory instructions remain unchanged. (27.02.2025)

RBI:

RBI has decided to restore risk weights on Scheduled Commercial Banks’ (SCBs) exposures to NBFCs based on external ratings, reversing the 25-percentage point increase imposed in November 2023 for risk weights below 100%. The revised framework aligns with Paragraph 5.8.1 of the Basel III Capital Regulations Master Circular. The above instructions shall come into effect from April 01, 2025, while all other regulatory instructions remain unchanged.

[RBI CIRCULAR NO. RBI/2024-25/120 DOR.STR.REC.61/21.06.001/2024-25 dated on 25.02.2025]