The Reserve Bank of India (RBI) has announced a significant change in the risk weight framework for unrated loans, raising the threshold for applying a 150% risk weight from ₹200 crore to ₹500 crore. This adjustment, effective from April 1, 2027, aims to provide a more balanced approach to credit risk management for corporates and non-banking financial companies (NBFCs). The RBI also withdrew previous provisions that imposed higher risk weights on exposures that became unrated after initial ratings. Additionally, a uniform risk weight of 100% for long-term exposures and 50% for short-term exposures has been established. The regulatory retail exposure framework has been expanded to include all small businesses with a turnover of up to ₹500 crore, and the exposure limit for classification under regulatory retail has been increased to ₹10 crore per counterparty from ₹7.5 crore. In terms of commercial real estate, the RBI has set a minimum borrower contribution of 25% of the total project cost, including land, while retaining the requirement for internal due diligence by banks.