Breaking News

You are here » Indian-Commodity  :  Economy  :  RBI expands Basel-III-compliant asset base of banks


RBI expands Basel-III-compliant asset base of banks

Ahead of the implementation of the Basel III capital regulations in India from March 31, 2019, the Reserve Bank of India (RBI) has amended a slew of previous regulations on the same. This will help banks to shore up their capital buffers along with improve liquidity coverage ratios (LCR). Therefore, the new amendments widen the assets of banks such as the excess CRR; excess G-secs holdings in SLR, and also excess g-secs under marginal standing facility, which all would now be included in the stock of liquid assets without any limit as also without applying any haircut.

The central bank has stated that liquid stock will also include marketable securities issued/guaranteed by foreign sovereigns which have only zero percent risk weight under the Basel II standardized approach for credit risk; actively traded repo or cash markets operations with zero risks, reserves held with foreign central banks in excess of the reserve requirement.

The regulator further said that the RBI reserves would include banks' overnight deposits and term deposits with the central bank which are explicitly and contractually repayable on notice from the depositing bank or that constitute a loan against which the bank can borrow on a term or on an overnight basis but automatically renewable basis. It also noted that other term deposits with the central bank are not eligible for this. However, it pointed out that if the term expires within 30 days, the term deposits could be considered as an inflow.

Related News

View all news

Govt need to consider permitting 100% FDI in multi-brand retail trade: CII

In order to promote growth in multi-brand retail trade, industry body the Confederation of Indian Industry (CII) in its latest report has stated that the government should consider permitting 100% foreign......

Direct tax collections jumps 15.7% in first eight months of FY19

The finance ministry stated that the income tax department has collected Rs 6.75 lakh crore in gross direct tax, comprising personal income tax (PIT) and corporate income tax (CIT), during the April-November......

Govt makes 60% pension withdrawal tax free

Detailing on taxability of fund under National Pension Scheme (NPS), the government has said that the entire 60% of the corpus withdrawn at the time of retirement will now be tax free. Finance Minister......

Top News

View all news

NBCC receives LoA from Ministry of Skill Development and Entrepreneurship

NBCC (India) has received a Letter of Award (LoA) of work from Ministry of Skill Development and Entrepreneurship, Government of India for construction of office building i.e. Kaushal Bhawan at New Delhi.......

Phoenix Mills transfers its entire stake held in Insight to Island

Phoenix Mills has entered into a Share Purchase Agreement (SPA) with Insight Mall Developers, its wholly-owned subsidiary (Insight) and Island Star Mall Developers, its subsidiary (Island), for sale/disposal......

AGC Networks' arm incorporates subsidiary in New Zealand

AGC Networks' wholly owned subsidiary -- AGC Networks Australia Pty, Australia, has incorporated its subsidiary namely 'AGC Networks New Zealand' which is registered with the Registrar of Companies of......