The Reserve Bank of India (RBI) is showing signs of a significant policy shift under its new Governor, opting to employ a consultative strategy. This is evident from its decision to rollback the increase in risk weightage on loans to both Non-Banking Financial Companies (NBFCs) and Microfinance Institutions (MFIs), as highlighted in a report by Nuvama Research. The initial reluctance to relax these weights was mentioned in a February 7 media briefing following monetary policy announcements.
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