- The Reserve Bank of India has decided to extend the relaxation offered to banks for offering liquidity support to non bank lenders – NBFCs and HFCs – up to March 31, 2019.
- Earlier, this facility was available till December 31, 2018.
- It had allowed banks to use government securities equal to their outstanding credit to non-bank lenders- NBFCs and home financiers – over and above their outstanding credit to them as on October 19, to be used to meet liquidity coverage ratio (LCR) requirements.
Points to Remember:
- Extended date of relaxation to banks by RBI for offering liquidity support to NBFC?
- Full form of LCR