The Reserve Bank of India has amended its 2025 capital adequacy directions for All India Financial Institutions to set the prudential treatment for exposures covered by the Government of India’s Emergency Credit Line Guarantee Scheme 5.0. Under the change, these exposures will receive a zero percent risk weight for part of the guaranteed amount rather than under the standard treatment for the full exposure. The zero percent risk weight applies to 75% of the guaranteed portion, defined as the part for which the settlement amount is expected to be received within 30 days from the date of invocation. The remaining exposure will continue to attract risk weight under the existing guidelines. The amendment follows a May 8, 2026 circular issued by National Credit Guarantee Trustee Company on ECLGS 5.0. The revised treatment takes effect immediately.
Reserve Bank of India2026-06-16
Reserve Bank of India gives partial zero percent risk weight treatment to ECLGS 5.0 exposures for all India financial institutions
The Reserve Bank of India has amended capital adequacy rules for All India Financial Institutions to introduce specific risk weight treatment for exposures guaranteed under ECLGS 5.0. A zero percent risk weight applies to 75% of the guaranteed portion where settlement is expected within 30 days of invocation, while the rest remains subject to existing guidelines. The change is effective immediately.