Reserve Bank of India vide its Circular dated 23rd November, 2022, has advised that the overnight balances held by banks with RBI under SDF shall be eligible as ‘Level 1 High Quality Liquid Assets (HQLA)’ for computation of LCR. The said clarification has been made pursuant to queries received from banks seeking clarification on the treatment of Standing Deposit Facility (SDF) under Liquidity Risk Management Framework.
This Circular is applicable to all Commercial Banks (excluding Local Area Banks, Regional Rural Banks and Payments Banks) and shall come into force with immediate effect.
Link: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12413&Mode=0
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