- Earlier, this limit was Rs 5 crore.
- This enhancement in the limit will lead to an increase in credit flow for small businesses.
- The risk weight of 75% will apply to all fresh exposures as well as to existing exposures where incremental exposures may be taken by banks upto the revised limit i.e. upto Rs 7.5 crore.
- Also, RBI has announced to extend the existing enhanced Held to Maturity (HTM) limit of 22% for SLR securities acquired between 1st Sep 2020 and 31st Mar 2021 and 31st Mar 2022.
- Thus banks may continue to hold such excess SLR securities in HTM category upto 31st Mar 2022.
- The enhanced HTM limit will be restored to 19.5% in a phased manner, beginning from the quarter ending of 30th June 2022.
- Static Part:
- HQ of RBI: Mumbai
- Governor of RBI: Shaktikanta Das
Question:
Q.1 RBI has raised bank’s aggregate exposure limit for small business from Rs 5 crore to Rs ___?
a. Rs 7.5 Crore
b. Rs 7 Crore
c. Rs 6.5 Crore
d. Rs 8 Crore
a. Rs 7.5 Crore
b. Rs 7 Crore
c. Rs 6.5 Crore
d. Rs 8 Crore
