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Aug 26, 2016
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RBI prescribes norms for enhancing credit to large borrowers
In order to mitigate the risk of high exposure of banking system to any single borrower, Reserve Bank today came out with prudential norms on enhancing credit supply to large borrowers through market mechanism. As per the norms, which will come into affect from April 1, 2017, incremental exposure of banking system to a specified borrower beyond normally permitted lending limit (NPLL) will be deemed to carry higher risk which will be recognised by way of additional provisioning and higher risk weights.
Source -
http://economictimes.indiatimes.com
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