October 19, 2018

RBI amended the requirements for computing liquidity coverage ratio of banks. With immediate effect, banks will be permitted to reckon Government securities held by them up to an amount equal to their incremental outstanding credit to non-banking financial companies (NBFCs) and Housing Finance Companies (HFCs), over and above the amount of credit to NBFCs and HFCs outstanding on their books as on October 19, 2018, as Level 1 High Quality Liquid Assets (HQLAs) under Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) within the mandatory SLR requirement. This will be in addition to the existing FALLCR of 13% of Net Demand and Time Liabilities (NDTL) and limited to 0.5% of the NDTL of the bank. The additional FALLCR will be available up to December 31, 2018. The single borrower exposure limit for NBFCs that do not finance infrastructure stands increased from 10% to 15% of capital funds, up to December 31, 2018.

Effective Date: October 19, 2018
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