Exposures to non-scheduled banks will be treated separately and assigned a riskweight of 100%. o  Though the Basel II framework allows lower risk-weight of 35% for residential mortgage and 75% for personal loans (as part of retail) we have opted to assign a higher risk-weight of 75% for residential mortgage and 125% for personal loans.
These are hard decisions which we, as a regulator, have taken with a view to capturing the true level of underlying risk knowing fully well that this might cast a burden on the banks in India.