New Delhi, June 22 -- The Reserve Bank of India (RBI) has asked lending institutions to assign zero per cent risk weight on the credit facilities extended under the Emergency Credit Line Guarantee Scheme to Micro, Small and Medium Enterprises (MSME).
As credit facilities extended under the scheme guaranteed by NCGTC are backed by an unconditional and irrevocable guarantee provided by Government of India, it has been decided that Member Lending Institutions shall assign zero percent risk weight on the credit facilities extended under this scheme to the extent of guarantee coverage, the RBI said in a notification.
Lending institutions include banks, eligible NBFCs and HFCs, and All India Financial Institutions (SIDBI, NHB, NABARD, EXIM Ba...