The Reserve Bank of India (RBI) has upped the absolute threshold for maximum aggregated retail exposure of banks to one counterparty to ₹7.5 crore, from ₹5 crore.
The move is aimed at facilitating higher credit flow to the retail segment, which mainly consists of individuals and small businesses (with turnover of up to ₹50 crore).
The increased exposure limit is in respect of all fresh as well as incremental qualifying exposures and is in harmonisation with the Basel guidelines. “This measure is expected to expand credit flow to small businesses,” the RBI said.
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