RBI Revises Risk Weighting Framework for NBFC Infrastructure Project Loans
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RBI Revises Risk Weighting Framework for NBFC Infrastructure Project Loans

The Reserve Bank of India (RBI) has revised risk-weighting framework for NBFCs' exposure to infrastructure projects. Loans to high-quality infrastructure projects, meeting specific repayment and operational criteria, will now attract lower risk weights. Projects with 20% debt repayment will have a 75% risk weight, and 50% with 50% repayment. If conditions aren't met, higher risk weights will apply. The RBI also defined criteria for 'high-quality infrastructure projects,' including operational completion and revenue dependency on government entities.

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