REVIEW OF RISK WEIGHTS ON MICROFINANCE LOANS

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

RBI/2024-25/119

DOR.CRE.REC.63/21.06.001/2024-25

February 25, 2025

All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks) excluding Payments Banks

Madam / Dear Sir,

Review of Risk Weights on Microfinance Loans

I. Commercial Banks (including Small Finance Banks but excluding Regional Rural Banks and Local Area Banks)

In terms of para 5.9.1 of 'Master Circular on Basel III - Capital Regulations' dated April 01, 20241, as amended from time to time, claims (including both fund-based and non-fund based) that meet all the four criteria listed in paragraph 5.9.3 of the Master Circular ibid may be considered as retail ...