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  Business   Economy  27 Sep 2018  RBI eases some cash requirement rules for banks

RBI eases some cash requirement rules for banks

REUTERS
Published : Sep 27, 2018, 10:00 am IST
Updated : Sep 27, 2018, 10:01 am IST

The move will ease tight cash conditions to some extent as it will reduce pressure on banks.

RBI said it would allow banks to account for up to two percentage points more of government securities.
 RBI said it would allow banks to account for up to two percentage points more of government securities.

Mumbai: The Reserve Bank of India (RBI) eased a mandatory liquidity rule on Thursday, by tweaking its liquidity coverage ratio requirements for banks.

In a circular the RBI said it would allow banks to account for up to two percentage points more of government securities, held in their statutory liquidity ratio reserves, to help them meet liquidity coverage ratio norms.

 

The move will ease tight cash conditions to some extent as it will reduce pressure on banks to buy more government securities to maintain high quality liquid assets, as mandated under global Basel III norms.

Tags: rbi, liquidity rule, banks
Location: India, Maharashtra, Mumbai (Bombay)