The RBI has rolled back the 25-percentage-point hike in risk weights on bank exposures to NBFCs, restoring them to external rating-based levels. Effective April 1, 2025. Experts believe that this is expected to boost bank credit growth in FY26. Additionally, the reduction in risk weights for microfinance loans will improve banks' appetite for lending in this segment, though near-term growth may remain subdued due to asset quality challenges. Read more at: https://bfsi.economictimes.indiatimes.com/news/policy/rbi-restores-risk-weights-on-bank-exposures-to-nbfcs-to-pre-november-2023-levels/118561829?utm_source=copy&utm_medium=pshare