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.
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