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RBI Eases LCR Norms, Imposes 2.5% Additional Run-Off Factor on Digital Deposits

RBI Eases LCR Norms, Imposes 2.5% Additional Run-Off Factor on Digital Deposits:

The Reserve Bank of India (RBI) has introduced significant amendments to its Liquidity Coverage Ratio (LCR) framework with the objective of enhancing liquidity risk management among commercial banks while aligning domestic norms with global standards. One of the key changes is the imposition of a 2.5% additional run-off factor on retail deposits that are enabled with digital banking facilities.