a) RBI vide notification RBI/2020-21/53 DOR.No.BP.BC.23/21.06.201/2020-21 dated October 12, 2020 has issued revised limit for Risk Weight Regulatory Retail Portfolio.
b) In order to reduce the cost of credit for this segment consisting of individuals and small businesses (i.e. with turnover of upto Rs. 50 crore), and also to harmonise with the Basel guidelines, it has been decided that the above threshold limit of Rs. 5 crore for aggregated retail exposure to a counterparty shall stand increased to Rs. 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 upto the revised limit of Rs. 7.5 crore. The other exposures shall continue to attract the normal risk weights as per the extant guidelines.
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