EXPOSURES OF SCHEDULED COMMERCIAL BANKS (SCBS) TO NON-BANKING FINANCIAL COMPANIES (NBFCS) - REVIEW OF RISK WEIGHTS

MUMBAI, India, Feb. 25 -- Reserve Bank of India issued the following notification:

RBI/2024-25/120

DOR.STR.REC.61/21.06.001/2024-25

February 25, 2025

All Scheduled Commercial Banks (including Small Finance Banks but excluding Regional Rural Banks and Payments Banks)

Madam / Dear Sir,

Exposures of Scheduled Commercial Banks (SCBs) to Non-Banking Financial Companies (NBFCs) - Review of Risk Weights

In terms of Paragraph 2.B of the circular 'Regulatory measures towards consumer credit and bank credit to NBFCs' dated November 16, 2023, the risk weight on the exposures of SCBs to NBFCs1 was increased by 25 percentage points (over and above the risk weight associated with the given external rating) in all cases where the extant risk weight...