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What is Loan System For Delivery of Bank Credit about?

The Reserve Bank of India issued final guidelines on the Loan System for Delivery of Bank Credit, effective from April 1, 2019, requiring large borrowers with working capital limits of ₹1500 million and above to maintain a minimum loan component of 40 percent. The guidelines also outline the sharing of working capital finance among consortium lenders, loan amount and tenor specifications, and risk weights for undrawn cash credit limits. The loan component requirement will increase to 60 percent starting Jul

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