Question

Why did the Reserve Bank of India (RBI) decide to roll back

Q: Answer-Why did the Reserve Bank of India (RBI) decide to roll back the increased risk weights on bank loans...

RBI rolled back the increased risk weights on bank loans to NBFCs to boost credit flow after a sharp decline in NBFC loan growth, ensuring adequate liquidity.

the increased risk weights on bank loans to NBFCs, effective April 1, 2025?

A To restrict NBFC lending and reduce liquidity in the market

B Due to a surge in bank loan growth to NBFCs

C To boost credit flow after a sharp decline in NBFC loan growth

D To encourage NBFCs to rely solely on capital markets for funding

E Because NBFCs opposed RBI’s risk weight policies

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Why did the Reserve Bank of India (RBI) decide to roll back

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