The Reserve Bank of India has amended its 2025 capital adequacy directions for regional rural banks to give preferential risk-weight treatment to exposures covered by the Government of India’s Emergency Credit Line Guarantee Scheme 5.0. Under the change, these exposures will attract a zero percent risk weight to the extent of 75 percent of the guaranteed portion, where the settlement amount is expected to be received within 30 days from the date of invocation. Any remaining exposure will continue to attract risk weight under the existing prudential guidelines. The amendment takes effect immediately.
Reserve Bank of India2026-06-16
Reserve Bank of India assigns zero percent risk weight to part of ECLGS 5.0 guaranteed exposures for regional rural banks
The Reserve Bank of India has revised capital adequacy rules for regional rural banks to apply a zero percent risk weight to part of exposures guaranteed under ECLGS 5.0. The treatment applies to 75 percent of the guaranteed portion where settlement is expected within 30 days of invocation, while the remainder follows existing risk-weight rules.