RBI releases draft circular on Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR) – Review of Haircuts on High Quality Liquid Assets (HQLA) and Run-off Rates on Certain Categories of Deposits

The Reserve Bank of India today released the draft circular on ‘Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR) – Review of Haircuts on High Quality Liquid Assets (HQLA) and Run-off Rates on Certain Categories of Deposits’. Comments on the draft circular are invited from banks and other stakeholders by August 31, 2024.

Feedback on the draft circular may be forwarded to:

The Chief General Manager-in-Charge
Reserve Bank of India
Department of Regulation
12th Floor, Central Office Building
Shahid Bhagat Singh Marg, Fort
Mumbai – 400001

Or by email with subject line "Feedback on Draft circular on modification to LCR framework".

Background

Please refer to paragraph 3 of Statement on Developmental and Regulatory Policies issued as a part of the Bi-monthly Monetary Policy Statement for 2024-25 dated April 05, 2024, wherein it was announced that a draft circular on modifications to LCR framework shall be issued shortly for comments of all stakeholders. The changes in draft circular are aimed at further improving the short-term liquidity resilience of banks in India.

(Puneet Pancholy)  
Chief General Manager