It has been decided to carry out the following modifications:
(i) Risk weighted assets for undisbursed amount of housing loans/other loans – In order to address a potential anomaly in computation of risk weighted assets for undisbursed amount of housing loans/other loans vis-à-vis that for an equivalent disbursed amount of similar exposures, it has been decided that the risk weighted assets computed for undisbursed amount of housing loans/other loans as per step 1 and step 2 of paragraph 6.3.1 of the Master Direction ibid, shall be capped at the risk weighted asset computed on a notional basis for equivalent amount of disbursed loan.
(ii) Risk weight for Commercial Real Estate – Residential Building – With reference to Sr. No. 3(d)(i)(a) under paragraph 6.2, the risk weight of fund- based and non-fund based exposures to ‘Commercial Real Estate-Residential Building’, which are classified as standard, shall be 75 per cent. For exposures under this category, which are not classified as standard, the risk weight shall be as per the category ‘Other Assets (Others)’ as indicated at Sr. No. 6(d) of paragraph 6.2 of the Master Direction ibid (which presently is at 100 per cent).
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