The Reserve Bank of India (RBI) on Thursday reduced the risk weight for consumer credit including personal loans to 100 per cent.
The RBI said that the consumer credit, including personal loans and credit card receivables, attracts a higher risk weight of 125 per cent or higher if warranted by the external rating of the counterparty.
"On a review, it has been decided to reduce the risk weight for consumer credit, including personal loans, but excluding credit card receivables, to 100 per cent," read an official release.
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