Please refer to the Prudential Regulations for Consumer Financing as amended from time to time.

2) It has been decided to allow higher clean limits on account of credit cards for prime customers of the banks/DFIs. Accordingly, following paragraph has been added after paragraph 3 of Regulation R-7:

“Banks/DFIs may assign clean credit card and personal loan limits up to Rs. 5,000,000 (aggregate from all banks/DFIs) to their prime customers subject to the condition that the aggregate clean limit assigned to one prime customer on account of personal loan should not exceed Rs. 2,000,000. The banks/DFIs shall put in place comprehensive criteria defining “Prime Customer” on the basis of, interalia, track record, credit worthiness and financial position, duly approved by their Board of Directors. The banks/DFIs are also encouraged to set internal limits for such clean financing to prime customers keeping in view their risk appetite and other factors. However, aggregate exposure on prime customers should not exceed 20% of the total exposure of the respective portfolio i.e. 80% exposure on account of credit cards and personal loans (separately) should comply with the limits prescribed for regular customers. Further, robust mechanism for risk profiling and risk mitigation should also be adopted for this purpose.”

3) All other instructions on the subject shall remain unchanged.

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