Indian bank stocks surge after RBI updates liquidity measures
New rules are less strict than originally planned
Banking stocks in India surged after the central bank issued final guidelines on its liquidity coverage ratio (LCR) for banks on April 21, which were less strict than first proposed.
The Reserve Bank of India set additional run-off rates for retail deposits enabled with internet- and mobile-banking facilities at 2.5%, lower than the 5% in the original proposal. The RBI also reduced the run-off rate for funding from non-financial entities to 40%, compared with the 100% currently in place.
The
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