What is risk weight for consumer credit, including personal loans, but excluding credit card receivables?
Answer: A
Under the standardised approach for Credit Risk Management, consumer credit, including personal loans and credit card receivables attract a higher risk weight of 125 per cent or higher, if warranted by the external rating of the counterparty. On a review, it has been decided by RBI to reduce the risk weight for consumer credit, including personal loans, but excluding credit card receivables, to 100%