Net Stable Funding Ratio Norms To Become Operational From April 2020: RBI

INSUBCONTINENT EXCLUSIVE:
The guidelines NSFR are in line with global norms prescribed by the Basel Committee.The RBI Thursday said NSFR norms that mandate banks to
maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities will be operational from
Against the backdrop of the global financial crisis that started in 2007, the Basel Committee on Banking Supervision (BCBS) proposed certain
reforms to strengthen global capital and liquidity regulations with the objective of promoting a more resilient banking sector.The
guidelines on Net Stable Funding Ratio (NSFR) are in line with global norms prescribed by the Basel Committee
While issuing the guidelines in May this year, the RBI had said the date of its implementation would be notified in a due course."It has now
been decided that the NSFR guidelines will come into effect from April 1, 2020," the central bank said in a notification
The NSFR would applicable for Indian banks at the solo as well as consolidated level
For foreign banks operating as branches in India, the framework would be applicable on stand-alone basis (for Indian operations only), said
the guidelines.As per the guidelines, the Reserve Bank may require an individual bank to adopt more stringent standards to reflect its