Risk-Weights
The RBI circular also provides that:
a. Restructured housing loans should be risk weighted with an additional risk weight of 25 percentage points.
b. With a view to reflecting a higher element of inherent risk which may bel atent in entities whose obligations have been subjected to restructuring either by banks on their own or along with other bankers / creditors, the unrated standard / performing claims on corporates should be assigned a higher risk weight of 125% until satisfactory performance under the revised payment schedule has been established for one year from the date when the first payment of interest / principal falls due under the revised schedule.
c. For details on risk weights, Master Circular RBI/2015-16/58 DBR.No.BP.BC.1/21.06.201/2015-16 dated July 1, 2015 on ‘Basel III Capital Regulations’ may be referred.