RBI puts off new LCR, project financing norms beyond March '26

STATING that the Reserve Bank does not believe in a regulatory regime that blindly seeks to ensure financial sector stability ignoring cost of such regulatory push, governor Sanjay Malhotra has put on hold two contentious regulations on a new liquidity coverage ratio (LCR) and stricter project financing norms by at least one year.

- ENS @Mumbai

According to the original timelines, both these norms were to come into force from this April.

Accordingly, both these norms will get deferred to by at least a year, that's beyond March 31, 2026, Malhotra told reporters here Friday at the post-policy presser.

Explaining the rationale, he underlined the fact that RBI is mindful of the cost of regulations for one and for another "the RBI does not think March 2026 is sufficient enough time for the implementation of these guidelines," and that the regulator does not want to cause disruption but a smooth transition.