All Scheduled Commercial Banks
(Excluding RRBs) & Small Finance
on Liquidity Standards - Liquidity Coverage Ratio (LCR),
FALLCR against credit disbursed to NBFCs and HFCs
Please refer to our circular dated September 27, 2018 increasing
the carve-out from SLR, under the Facility to Avail Liquidity for Liquidity
Coverage Ratio (FALLCR), to 13 per cent of NDTL.
2. It has been decided that,
with immediate effect, banks will be permitted to also reckon Government
securities held by them up to an amount equal to their incremental
outstanding credit to NBFCs and Housing Finance Companies (HFCs), over and
above the amount of credit to NBFCs and HFCs outstanding on their books as
on October 19, 2018, as Level 1 HQLA under FALLCR within the mandatory SLR
requirement. This will be in addition to the existing FALLCR of 13 per cent
of NDTL, and limited to 0.5 per cent of the bank’s NDTL.
3. The above additional FALLCR
will be available up to December 31, 2018.
4. The single borrower exposure
limit for NBFCs which do not finance infrastructure stands increased from
10 percent to 15 percent of capital funds, up to December 31, 2018.
(S K Kar)
Chief General Manager