RBI issued a circular on ‘Regulatory measures towards consumer credit and bank credit to NBFCs’ dated November 16, 2023, as per 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 as per external rating of NBFCs was below 100 per cent.
On a review, it has been decided to restore the risk weights applicable to such exposures and the same shall be as per the external rating. The instructions shall come into effect from April 01, 2025.
