Ref. No.NB.DoS/ POL/ 4203 /J-1/2018-19
15th February 2019
Circular No. 36 /DoS- 01 /2019
All Regional Rural Banks
Risk Weight applicable on Interest Subvention amount receivable from Government of India
We have received references from Regional Rural Banks and Sponsor Banks regarding the Risk Weight to be applied for ‘Interest Subvention amount receivable from GoI’. The matter was examined by us in consultation with the Reserve Bank of India and we advise that –
i. ‘Interest Subvention Amount Receivable’ being a direct claim from GoI will attract zero percent risk weight.
ii. The ‘Interest Subvention Amount Receivable’ is to be reported under ‘Other Assets’ with a separate sub-head as “Interest Subvention receivable from GoI” with a risk weight of zero percent.
2. The Risk weights for the other items shall be as laid down by the Reserve Bank of India in their Circular No. RPCD. CO. RRB.BC.No.35/03.05.33/2014-15 dated 21st October 2014.
3. The instructions conveyed vide our Circular Letter No. NB. DoS. HO. Pol/4797/J-1/2017-18 (CircularNo.47/DoS-14/2018) dated 16th March 2018 may kindly be treated as rescinded.
4. Please acknowledge the receipt of this circular to our Regional Office concerned.
(K. R. Rao)
Chief General Manager