RBI’s Softer LCR Guidelines Are Positive Surprise As Analysts See System-Wide Liquidity Support

RBI issues new LCR guidelines for banks

Mumbai: The RBI has issued new Liquidity Coverage Ratio (LCR) guidelines which will require a bank to assign additional run-off rates of 2.5 per cent to internet and mobile banking-enabled retail and small business customer deposits with effect from April 1, 2026. Banks will also have to adjust the market value of Government Securities (Level 1 HQLA) with haircuts in line with margin requirements under the Liquidity Adjustment Facility (LAF) and…

RBI issues new LCR guidelines for banks - tennews.in: National News Portal

Mumbai, April 22 (IANS) The RBI has issued new Liquidity Coverage Ratio (LCR) guidelines which will require a bank to assign additional run-off rates of 2.5 per cent to internet and mobile banking-enabled retail and small business customer deposits with effect from April 1, 2026. Banks will also have to adjust the market value of […] The post RBI issues new LCR guidelines for banks appeared first on tennews.in: National News Portal.

Reserve Bank of India revises norms on liquidity coverage ratio framework

The Reserve Bank of India (RBI) has issued final guidelines under the Basel III Liquidity Coverage Ratio (LCR) framework, which includes relaxation of some provisions from its earlier draft proposal presented in last July. An important adjustment in the provision pertains to the classification of retail deposits that are enabled by internet and mobile banking (IMB) facilities. The initial draft had suggested an extra run-off factor of 5%, but th…

RBI Update - Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR) – Review of haircuts on High Quality Liquid Assets (HQLA) and review of composition and run-off rates on certain categories of deposits-(Applicable -Commercial Banks

In continuation of the guidelines issued under the Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools, and LCR Disclosure Standards, and pursuant to the draft circular dated July 25, 2024, feedback from stakeholders has been duly examined. Based on the review and analysis, the following final guidelines are issued: 1. Run-Off Factors for Retail Deposits with Internet and Mobile Banking (I…

RBI’s Softer LCR Guidelines Are Positive Surprise As Analysts See System-Wide Liquidity Support

Brokerages were unanimous on Tuesday in their endorsement of the Reserve Bank of India’s final Liquidity Coverage Ratio guidelines, calling the revised framework a marked departure from the tighter draft and a significant liquidity tailwind for banks.What RBI AnnouncedLate on Monday, the central bank finalised its LCR framework, softening its stance from the draft proposal. It reduced the additional run-off rate for internet and mobile banking-e…