The Reserve Bank of India has amended its capital adequacy directions for non-banking financial companies to give preferential risk-weight treatment to exposures backed by the Emergency Credit Line Guarantee Scheme 5.0. Under the change, exposures guaranteed under ECLGS 5.0 will attract a zero percent risk weight for 75 percent of the guaranteed portion, limited to the part for which the settlement amount is expected within 30 days from the date of invocation. Any remaining exposure will continue to attract risk weight under the existing prudential guidelines. The amendment ties the capital treatment to ECLGS 5.0 as set out in the National Credit Guarantee Trustee Company circular and took effect immediately.
Reserve Bank of India2026-06-16
Reserve Bank of India grants partial zero risk weight treatment for NBFC exposures under ECLGS 5.0
The Reserve Bank of India has amended NBFC capital adequacy rules to allow zero percent risk weight on part of exposures guaranteed under ECLGS 5.0. The relief applies to 75 percent of the guaranteed portion expected to be settled within 30 days of invocation, while the rest remains subject to existing risk-weight rules. The change is effective immediately.