Which of the following statements is correct regarding the reduction in risk weights for banks lending to NBFCs and MFIs as per RBI's announcement in February 2025?

  1. RBI reduced the risk weights on bank loans to NBFCs by 25 basis points, from 125% to 100%.

  2. The new risk weight regulations will come into effect on April 1, 2025.

  3. The reduction in risk weights applies to loans given by Scheduled Commercial Banks (SCBs) to Non-Banking Financial Companies (NBFCs) and Microfinance Institutions (MFIs).

1
Only 1 and 2
2
Only 2 and 3
3
Only 3
4
Only 2
5
All are correct

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