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The RBI is reviewing its expected credit loss framework after rating agencies recorded default rates above benchmark thresholds. A stricter application could raise risk weights for SME loans, pushing up borrowing costs for small and mid-sized businesses.
The RBI has raised the retail loan exposure limit to Rs 10 crore and reduced risk weights, cutting the capital banks must hold against such loans. This frees up lending capacity across the retail segment, including individuals and small businesses. The rules follow draft norms issued in October 2025.
Tag
The RBI is reviewing its expected credit loss framework after rating agencies recorded default rates above benchmark thresholds. A stricter application could raise risk weights for SME loans, pushing up borrowing costs for small and mid-sized businesses.
28d ago · 3 min · Policy & Government
The RBI has raised the retail loan exposure limit to Rs 10 crore and reduced risk weights, cutting the capital banks must hold against such loans. This frees up lending capacity across the retail segment, including individuals and small businesses. The rules follow draft norms issued in October 2025.
2mo ago · 1 min · Policy & Government
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