What changed
The amendment introduces a zero‑risk‑weight for up to 75 % of the guaranteed portion of ECLGS 5.0 exposures, where the settlement amount is expected within thirty days; the remaining exposure continues to attract the risk weight prescribed in the existing guidelines.
What it means for you
This amendment is expected to reduce the capital requirements for NBFCs that participate in the ECLGS 5.0 scheme, making it easier for them to lend to small businesses and individuals. This, in turn, may boost economic growth and support the recovery of small businesses.
What you must do
- Review your NBFC's capital adequacy ratios
- Assess the impact of the amendment on your lending business
- Consider participating in the ECLGS 5.0 scheme
Who it affects
Non-banking financial companies (NBFCs)
What is the ECLGS 5.0 scheme?
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 is a government-backed guarantee scheme administered by the National Credit Guarantee Trustee Company (NCGTC) that provides credit guarantees to small businesses and individuals. Refer to NCGTC circular dated May 8, 2026 for details.