Friday, February 12, 2016

RBI permits 3% more of SLR for LCR 12 Feb, 2016

The Reserve Bank of India has concluded the liquidity issues of commercial banks by easing the rules & regulations on the liquidity coverage ratio.Click for Commodity tips

On Yesterday, it allowed banks to qualify 10% of SLR bonds as Liquidity Coverage Ratio (LCR) from 7% earlier, a requirement mandated under the Basel-III accounting norms from their requirements of Statutory Liquidity Ratio. The move will help banks to use an additional Rs 2.8 lakh cr of their resources for lending.

The Reserve Bank had met banks on Tuesday this week to discuss their liquidity woes. "We are an open central bank." RBI governor Mr. Raghuram Rajan told at CII conference referring to the l meeting in which banks complained liquidity shortage seeking a total of 15% of SLR be made eligible for accounting LCR. "We will allow banks to use 3% more SLR under LCR" Rajan told in talks.