Home › Circulars › RBI/2022-23/20

Housing Loan Risk Weight Relief Extended to March 31, 2023

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2022-23/20 · issued 08 Apr 2022 · ~2 min read
Quick answerRBI extends rationalised risk weights on new individual housing loans up to March 31, 2023, continuing the relief first given in October 2020. Banks can maintain lower capital requirements on these loans, supporting home lending.

What changed

The RBI has extended the validity of the rationalised risk weight framework for new individual housing loans, originally set to expire on March 31, 2022, to now cover loans sanctioned up to March 31, 2023. All other conditions from the October 16, 2020 circular remain unchanged.

What it means for you

Banks can continue to apply lower risk weights on new housing loans, reducing capital charge and freeing up capital for more lending. This supports the government's push for affordable housing and helps banks manage capital efficiency. Lenders should factor this extension into their credit and capital planning for the next fiscal year.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All Scheduled Commercial Banks (excluding Local Area Banks and Regional Rural Banks), Retail lending departments, Risk management teams

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this extension apply to all housing loans or only specific amounts?

The circular continues the rationalised risk weights for all new individual housing loans, irrespective of the loan amount, as per the October 2020 circular.

Are there any changes to other conditions from the October 2020 circular?

No, all other instructions from the October 16, 2020 circular remain unchanged. Only the validity period has been extended.

Does this apply to loans sanctioned before April 8, 2022?

The extension covers new loans sanctioned from April 1, 2022 up to March 31, 2023. Loans sanctioned earlier under the previous circular continue to be governed by that circular.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #249: DOR.CRE.REC.13/08.12.015/2022-23 — "Individual Housing Loans – Rationalisation of Risk Weights" dated April 8, 2022”
📜 Read the original circular — full text as issued by RBI
RBI/2022-23/20 DOR.CRE.REC.13/08.12.015/2022-23 April 8, 2022 All Scheduled Commercial Banks (Excluding Local Area Banks and Regional Rural Banks) Madam/ Dear Sir, Individual Housing Loans – Rationalisation of Risk Weights Please refer to circular DOR.No.BP.BC.24/08.12.015/2020-21 dated October 16, 2020 on rationalization of risk weights on Individual Housing Loans in terms of which risk weights were rationalised irrespective of the amount, for all new housing loans sanctioned from October 16, 2020 and up to March 31, 2022. 2. On review, it has been decided to continue with the risk weights contained in the circular ibid for all new individual housing loans sanctioned up to March 31, 2023. All other instructions applicable in terms of the circular dated October 16, 2020 remain unchanged. Yours faithfully, (Manoranjan Mishra) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/20 · issued 08 Apr 2022. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forRisk ManagementProduct Manager (Digital & Lending)Compliance TeamCredit Manager / UnderwritingRM — Loans (Assets)Senior Management / Board
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Department of Regulation
SFB Pillar 3 Disclosure Norms Aligned with BaselUCB Deposit Rate Disclosure & Uniformity Rules UpdatedLAB Deposit Rate Disclosure & Uniformity Rules TightenedPayments Banks: Interest Rates Must Match Disclosed ScheduleRBI Updates Bulk Deposit Rate Rules and Disclosure Timing
Browse all departments →

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12286&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—