The Reserve Bank of India announced more measures to increase liquidity flows to the non-banking financial companies. The RBI permitted banks to use government securities equal to their incremental outstanding credit to NBFCs, over and above their outstanding credit to them as on October 19, to be used to meet liquidity coverage ratio requirements.
The move will help provide liquidity to housing finance companies (HFCs) and non-banking finance companies (NBFCs) which have come under pressure following series of default by IL&FS group companies. This will be in addition to the existing FALLCR of 13% of total deposits, and limited to 0.5% of the bank’s total deposits.
Source- The Hindu
Static/Current Takeaways From Above News For IBPS PO Mains Exam 2018:
- Urjit Patel- 24th Governor of RBI, Headquarters- Mumbai, Established on- 1st April 1935, in Kolkata.