Question
The Reserve Bank of India has increased the threshold
limit for Banks to maintain Liquidity Coverage Ratio (LCR) on deposits and other extension of funds received from non-financial small business customers from ₹5 crore to ₹_____ crore.Solution
The Reserve Bank of India has increased the threshold limit for Banks to maintain Liquidity Coverage Ratio (LCR) on deposits and other extension of funds received from non-financial small business customers from ₹5 crore to ₹7.5 crore. So, henceforth, all commercial banks (other than regional rural banks, local area banks and payments banks) will be required to maintain LCR if they receive deposits of ₹ 7.5 crore and above from non-financial small business customers against ₹5 crore earlier.
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