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RBI sets new risk weight rules for retail loans with strict exposure limits
Economy
Published on 27 April 2026
Eligibility hinges on a tight 0.2% borrower concentration cap
The RBI has finalised new risk weight norms for certain retail loans. To qualify, lenders must extend credit to individuals or small businesses with turnover up to ₹500 crore, keeping loans within a ₹10 crore exposure cap per borrower. The loans must also be part of a diversified portfolio where no borrower exceeds 0.2% exposure, and the products must be standard retail categories.
- Loans must target individuals or small businesses up to ₹500 crore turnover
- A hard ₹10 crore exposure cap applies per borrower
- Diversified portfolios are required with max 0.2% single-borrower concentration
- Only standard retail products are eligible under the norms
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times