RBI : The RBI has reviewed risk weights on microfinance loans. Microfinance loans classified as consumer credit will attract a 100% risk weight instead of the 125% applied to other consumer credit. All microfinance loans extended by RRBs and LABs shall attract a risk weight of 100 %. The above instructions shall be applicable from the 25.02.2025, in respect of outstanding as well as new microfinance loans. (27.02.2025)

Daily Updates / By

RBI:

The RBI has reviewed risk weights on microfinance loans. Microfinance loans classified as consumer credit will attract a 100% risk weight instead of the 125% applied to other consumer credit. All microfinance loans extended by RRBs and LABs shall attract a risk weight of 100 %. The above instructions shall be applicable from the 25.02.2025, in respect of outstanding as well as new microfinance loans.

[RBI CIRCULAR NO. RBI/2024-25/119 DOR.CRE.REC.63/21.06.001/2024-25 dated on 25.02.2025]