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Risk Weight applicable on Interest Subvention amount receivable from Government of India
Ref. No. NB. DoS/ POL/ 4460 /J-1/2018-19
5th March 2019
 
Circular No. 50 /DoS-05    /2019
The Managing Director/Chief Executive Officer
All State Cooperative Banks
All District Central Cooperative Banks
 
Dear Sir
 
Risk Weight applicable on Interest Subvention amount receivable from Government of India
We have received references from Cooperative 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. RCB. BC. No.37/07.51.012/2014-15 dated 29th October 2014.
 
3.  The instructions conveyed vide our Circular Letter No. NB. DoS. HO. Pol/4799/J-1/2017-18 (CircularNo.46/DoS-13/2018) dated 16th March 2018 may kindly be treated as rescinded.
 
4. Please acknowledge the receipt of this circular to our Regional Office concerned.
 
Yours faithfully 
(K. R. Rao)
Chief General Manager