MUMBAI, JANUARY 24: The Reserve Bank of India (RBI) on Monday released prudential norms for takeout financing by financial institutions in India. It has stated the taking over institution will have tomake provisions on non-performing assets (NPAs) being taken over in their accounts from the date of it turning into a NPA in the lending institution's books.The weightage for the lending institution in cases of assumption of partial credit risk has been prescribed at twenty percent on the loan to be taken over and hundred percent on amount not taken over, the RBI said.The central bank has also prescribed 100 per cent risk weightage in cases of conditional takover financing for both lending and taking over institution.
