**Summary:**
This circular, RBI/2022-23/20 DOR.CRE.REC.1308/12.015/2022-23, issued by the Reserve Bank of India (RBI) on April 8, 2022, addresses the rationalization of risk weights on individual housing loans for all Scheduled Commercial Banks (excluding Local Area Banks and Regional Rural Banks). The circular extends the applicability of risk weights, as outlined in circular DOR.No.BP.BC.24/08.12.015/2020-21 dated October 16, 2020, to all new individual housing loans sanctioned up to March 31, 2023. The original circular rationalized risk weights on individual housing loans irrespective of the loan amount, for new loans sanctioned between October 16, 2020, and March 31, 2022. All other instructions detailed in the October 16, 2020, circular remain in effect. Contact information for inquiries is available through Manoranjan Mishra, Chief General Manager.
Key Entities Referenced
Reserve Bank of India: The central bank of India, referred to here through the document identifier RBI20222320.
Scheduled Commercial Banks: Banks included in the Second Schedule to the Reserve Bank of India Act, 1934, but excluding Local Area Banks and Regional Rural Banks.
Local Area Banks: A type of bank in India.
Regional Rural Banks: Government sponsored regional banks in India.
Individual Housing Loans: Loans provided to individuals for the purpose of constructing or purchasing a house.
DOR.No.BP.BC.2408.12.015202021: Reference to a specific circular issued by the Reserve Bank of India.
October 16, 2020: Date of the circular DOR.No.BP.BC.2408.12.015202021 regarding rationalization of risk weights on Individual Housing Loans.
Manoranjan Mishra: Chief General Manager at Reserve Bank of India signing the circular.
RBI/2022-23/20
DOR.CRE.REC.13/08.12.015/2022-23 April 8, 2022
All Scheduled Commercial Banks
(Excluding Local Area Banks and Regional Rural Banks)
Madam/ Dear Sir,
Individual Housing Loans – Rationalisation of Risk Weights
Please refer to circular DOR.No.BP.BC.24/08.12.015/2020-21 dated October 16, 2020 on
rationalization of risk weights on Individual Housing Loans in terms of which risk weights were
rationalised irrespective of the amount, for all new housing loans sanctioned from October 16,
2020 and up to March 31, 2022.
2. On review, it has been decided to continue with the risk weights contained in the circular
ibid for all new individual housing loans sanctioned up to March 31, 2023. All other instructions
applicable in terms of the circular dated October 16, 2020 remain unchanged.
Yours faithfully,
(Manoranjan Mishra)
Chief General Manager