RBI tweaked LCR norms to boost liquidity
CONTEXT:
- RBI provided additional 2% liquidity window to the lenders by tweaking liquidity coverage ratio (LCR) norms.
- The LCR indicates the proportion of highly liquid assets held by banks to ensure their ability to meet short-term obligations.
- NBFCs-NDSI in the category of Investment and Credit Companies (ICCs) will be made eligible to apply for Authorised Dealer Category II licence.