RBI has Revised Limit for Risk Weight for Claims included in the Regulatory Retail Portfolios

The Reserve Bank of India vide circular dated October 12, 2020 has Revised Limit for Risk Weight for Claims included in the Regulatory Retail Portfolios. Threshold limit of ₹ 5 crore for aggregated retail exposure to a counterparty shall stand increased to ₹ 7.5 crore from the date of this circular. The risk weight of 75 per cent will apply to all fresh exposures and also to existing exposures where incremental exposure may be taken by the banks up to the revised limit of ₹ 7.5 crore.

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