RBI begins status check with banks on LCR as per draft norms, say sources
This story was originally published at 13:55 IST on 21 January 2025
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--Mkt sources: RBI sought bks' LCR details as per draft norm via DAKSH portal
--CONTEXT: DAKSH is RBI's Advanced Supervisory Monitoring System
--Mkt sources:RBI seeking bks' LCR details, under draft norms, as of Dec 31
By Pratigya Vajpayee, Aaryan Khanna and Pratiksha
MUMBAI/NEW DELHI - Less than three months before the draft guidelines on banks' Liquidity Coverage Ratio are proposed to come into effect, the Reserve Bank of India has asked some banks to submit details of their status, as on Dec. 31, under these new norms, according to four market sources aware of the development.
The query has been made through the RBI's DAKSH portal, which is its advanced system to monitor compliance requirements of supervised entities such as banks and non-banking finance companies. Banks have to submit the required details before the end of January, sources told Informist.
"They have asked for security-wise details of high quality liquid assets as of Dec. 31, to be submitted by Jan. 29," one of the sources said. "The phrasing suggests that the Liquidity Coverage Ratio has to be computed both under the old norms and the new draft norms, with the enhanced run-offs."
The RBI released its draft Liquidity Coverage Ratio guidelines on Jul. 25, proposing that banks assign an additional 5% run-off factor to internet and mobile banking-enabled retail deposits. It also proposed tighter norms for valuing banks' high-quality liquid assets, among other changes. Currently, banks must maintain high-quality liquid assets worth 100% of their expected outflows for the next 30 days. The draft norms, which have faced opposition from the industry, are supposed to come into effect from Apr. 1.
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