Equity Market Pundit

Reserve Bank of India (RBI) on Thursday notified the reduction in risk weight on hosing loans for up to Rs 20 lakh from 75 per cent to 50 per cent.

The central bank also reduced the risk weight for banks' investment in mortgage backed securities, issued by the housing finance companies, to 50 per cent from the existing 75 per cent.
RBI, however, said it would review the risk weights after one year keeping in view the default experience and other relevant factors.