Reserve Bank of India (RBI) has raised the banks’ maximum aggregate retail exposure limit to entities with turnover up to Rs 50 crore to Rs 7.5 crore. Earlier this limit was Rs 5 crore. The decision has been taken to increase credit flow to small businesses. 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 Rs 7.5 crore.
RBI has also decided to extend the existing enhanced Held to Maturity (HTM) limit of 22 per cent for SLR securities acquired between September 1, 2020, and March 31, 2021, up to March 31, 2022. This means that Banks may continue to hold such excess SLR securities in HTM category up to March 31, 2022. The enhanced HTM limit would be restored to 19.5 per cent in a phased manner, beginning from the quarter ending June 30, 2022.
Important takeaways for all competitive exams:
India's push towards the cashless and the efficient transportation system it have implemented the digital…
The Durand Line is one of the most important and debated borders in South Asia.…
Historic moment for the culture of India as the first ever life size statue of…
The major global political setback comes as the peace talks between the United States and…
Every year on the 13th April India remembers the innocent victims of the Jallianwala Bagh…
April, starting month of the financial year, has many national and international events. From cultural…