RBI Eases LCR Norms: Additional Run-off Rate Lowered to 2.5% from Proposed 5%
25
Apr
Apr
In a welcome move for the Indian banking sector, the Reserve Bank of India (RBI) has relaxed the Liquidity Coverage Ratio (LCR) norms in its final guidelines compared to the draft proposal issued earlier. The central bank has halved the proposed additional run-off rate from 5% to 2.5%, providing much-needed relief for banks concerned about the strain on liquidity. Let’s break down what this means, why it matters, and how it impacts the banking system.
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