Current Affairs - Banking - Discussion

Reserve Bank of India enhanced the "Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR)" from the existing 11 per cent to 13 per cent of their deposits. Its objective is to overcome any possible liquidity constraints by the banks. This will be effective from October 1. This will enable the banks to forge out up to 15 per cent of holdings under the statutory liquidity reserves (SLR) during liquidity coverage ratio (LCR) requirements as compared to 13 per cent now. As of September 26, banks had availed of Rs.1.88 trillion through term repos from the Reserve Bank.