Individual Housing Loans: Rationalisation of Risk-Weights and Loan to Value (LTV) Ratios
Reserve Bank of India
June 7, 2017
RBI/2016-17/317
DBR.BP.BC.No.72/08.12.015/2016-17
June 7, 2017
All Commercial Banks
(Excluding Regional Rural Banks and Local Area Banks)
Madam/Dear Sir,
Please refer to the Second Bi-monthly Monetary Policy Statement for 2017-18, announced today.
2. As a countercyclical measure, the LTV ratios, risk weights and standard asset provisioning rate for individual housing loans sanctioned on or after the date of this circular shall be as under:
| Outstanding loan | LTV ratio (%) | Risk Weight (%) | Standard Asset Provision (%) |
| Up to Rs.30 lakh | < 80 | 35 | 0.25 |
| > 80 and < 90 | 50 | ||
| Above Rs.30 lakh and up to Rs.75 lakh | < 80 | 35 | |
| Above Rs.75 lakh | < 75 | 50 |
3.The LTV ratios, Risk Weights and Standard Asset Provision set out in the circular DBR.BP.BC.No.44/08.12.015/2015-16 dated October 8, 2015, on the captioned subject, shall continue to apply to loans sanctioned up to June 6, 2017.
4. All other instructions referred to in the above mentioned circular remain unchanged.
Yours faithfully,
(S.S. Barik)
Chief General Manager in-Charge
Assessing Officer had taken a reasonable stand that 25 kg written in WhatsApp chat/text message was 25 lakh - ITAT…
Shareholders are only owners of the shares of the company therefore, income from properties earned by the company cannot be…
When approval for reassessment was granted by unauthorised authority, such jurisdictional error cannot be shielded by the law of limitation…
ITAT on presumption of bogus purchases ought to have remanded case to AO to reconsider the whole matter instead of…
Where proceedings u/s 153C are barred by limitation, AO can not reopen the case invoking section 148 and 148A of…
Corporate guarantees executed by the corporate debtor constitute “financial debt” under IBC and banks to be recognized as financial creditors…