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Covid relief: MSME loans under guarantee scheme will not be charged risk weight

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MUMBAI: Loans given to micro, small and medium enterprises under the ₹3 lakh crore government guarantee scheme of the Atmanirbhar Bharat Abhiyan package will not be charged any risk weight, according to a senior Reserve Bank of India (RBI) official who spoke on condition of anonymity.

The scheme offers an unconditional government guarantee to banks in the event of default by these small borrowers. The finance ministry had sought RBI's approval to make these loans risk free, leaving banks with more capital to lend.

Typically, MSME loans attract a minimum of risk weight of 20%. However, the unconditional guarantee provided by the government gives enough comfort to RBI to allow banks to keep zero risk weight against these loans, said the

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COVID-19
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United States
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United Kingdom
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Deaths: 141 607
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Russia
Russia
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Recovered: 0
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Covid-19.rehab - the latest news concerning the spread of the SARS-CoV-2 coronavirus (formerly 2019-nCoV), as well as the infectious disease that it causes COVID-19, in separate countries and in the world as a whole. Current news on the topic of coronavirus SARS-CoV-2. Quarantine, pandemic 2020, epidemic: what is it, when will it come to end, precautions and how to protect yourself from this disease. The most honest news, no fakes! To keep up with the latest news, stay tuned for updates on the site! Every day we will collect news and statistics on coronavirus from around the world for you to be aware of this topic.

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