BENGALURU, Oct 7 (Reuters) – The Reserve Bank of India on Tuesday proposed changes to the way banks assign risk weightage to loans and the so-called expected credit loss (ECL) framework, in a move aimed at aligning domestic regulations with global norms.
The proposed changes seek to ease the risk weightage, or capital that must be set aside, for different types of loans.
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Major changes include differentiated risk weights for corporate loans, loans to micro, small and medium enterprises (MSMEs) as well as real estate exposures.
The RBI also proposed including
India’s central bank proposes changes to credit risk rules for lenders
