Tuesday, September 16, 2014

RBI to restrict banks' group exposure limit at 25%, down from current 40%

The Reserve Bank of India proposes to cut banks' group exposure limit by as much as 15 percentage points to reduce the systemic risk posed by lending too much to any single business house. This means that credit to any particular group will have to be restricted to 25% of a bank's capital, down from 40% now.

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