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RBI eases SLR (Statutory Liquidity Ratio) rules
September 28 , 2018
2277 days
1052
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- The Reserve Bank of India allowed banks to dip further into statutory cash reserves in a bid to ease a liquidity squeeze afflicting the nation’s money markets.
- As per the RBI, banks could 'carve out' up to 15% of holdings under the statutory liquidity reserves to meet their liquidity coverage ratio (LCR) requirements as compared to 13% now.
- The move by the central bank follows concerns over tight liquidity conditions and banks’ unwillingness to lend to NBFCs (Non-Banking Financial Companies).
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