Mumbai : The Reserve Bank of India on Thursday has allowed banks to use government securities, held under the statutory liquidity ratio, of up to 1% more of their net demand and time liabilities as level-1 high-quality liquid assets for computing liquidity coverage ratio.
Accordingly, the total carve-out from SLR to compute liquidity coverage ratio will rise to 11% from 10% earlier.
Last month, Cogencis had reported that banks have sought further increase in such carve-out keeping in mind possible tightness in systemic liquidity during the maturity of Foreign Currency Non-Resident (Bank) deposits between September and November.
