In a bid to further improve the cash position of banks, RBI has tweaked Liquidity Coverage Ratio (LCR) norms to provide an additional 2% window to lenders. As per RBI Governor Shaktikanta Das, this move will harmonise the liquidity requirements of banks and release additional money for lending. LCR indicates the proportion of highly liquid assets held by banks to ensure their ability to meet short-term obligations.
Source- AIR World Service
Static/Current Takeaways Important For LIC AAO Mains Exam:
- RBI 25th Governor: Shaktikant Das, Headquarters: Mumbai, Founded: 1 April 1935, Kolkata.