Indian banks urge central bank to relax liquidity rules amid deposit crunch
Indian banks are requesting the central bank to ease liquidity regulations ahead of tomorrow's policy meeting. Lenders seek a delay in new coverage ratio norms.
Insights:
Indian lenders have formally requested the Reserve Bank of India to relax liquidity regulations as they face mounting funding pressures. The banks are seeking a delay to the implementation of new liquidity coverage ratio (LCR) norms and are asking for greater flexibility to move securities between held-to-maturity (HTM) and trading books. This development, which remains under discussion, is intended to help lenders manage their liquidity buffers and asset-liability management more effectively in India 
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