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RBI/2016-17/95
DBR.BP.BC.No.20/21.06.001/2016-17
October
20, 2016
All Scheduled Commercial Banks
(Excluding Regional Rural Banks)
Dear Sir,
Risk Weights for exposures to
HFCs
It has been observed that there
is a lack of uniformity among banks in the application of risk weights on
their exposures to Housing Finance Companies (HFCs).
2. The matter of risk weights
prescribed in respect of banks’ exposures to HFCs has been examined and it
is advised that exposures to all HFCs would be risk weighted as per the
ratings assigned by the rating agencies registered with the SEBI and
accredited by the Reserve Bank of India, in a manner similar to that of corporates,
AFCs, NBFC-IFCs and NBFC-IDFs as prescribed under Para 5.8.1 of the Master Circular, DBR.No.BP.BC.1/21.06.201/2015-16 dated
July 1, 2015 on Basel III Capital Regulations read with the circular, DBR.No.BP.BC.6/21.06.001/2016-17 dated August
25, 2016 on ‘Review of Prudential Norms- Risk Weights for
Exposures to Corporates, AFCs and NBFC-IFCs’.
Yours faithfully,
(Ajay Kumar Choudhary)
Chief General Manager
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