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:
The appointment of the Prime Minister of India is a crucial process that follows the…
Richard Slayman, aged 62, the first person to ever receive a genetically modified pig kidney…
Wipro, a leading IT major, has announced the appointment of Vinay Firake as the Chief…
Neeraj Chopra, the reigning Olympic and world champion in javelin throw, started his 2024 season…
Rice, a staple food for billions of people worldwide, holds immense cultural and nutritional significance.…
The European Union has passed its first-ever legislation aimed at combating violence against women. The…