- The Reserve Bank of India will ease the Statutory Liquidity Ratio (SLR) norms from October 1 to induce liquidity into the financial system amid concerns of a credit crunch.
- RBI has enhanced the “Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR)” from the existing 11 percent to 13 percent of their deposits.
- This will enable the banks to ‘carve out’ up to 15 percent of holdings under the statutory liquidity reserves to meet their liquidity coverage ratio (LCR) requirements as compared to 13 percent now.
- SLR is a reserve requirement that commercial banks must maintain in the form of cash, gold reserves, government approved securities before providing credit to the customers.
