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India central bank eases rule for banks' liquidity coverage ratio

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India central bank eases rule for banks' liquidity coverage ratio

The ReserveBank of India eased Basel III liquidity rules for banks, allowinglenders to hold an additional percentage point of the deposits they hold asgovernment bonds under their statutory liquidity ratios.

The central bank said July 21 that banks can now hold up to11% of their deposit base as their statutory liquidity ratio requirement.