Reserve Bank raises concern over falling deposit mobilisation

WARNING banks and nonbanks in particular and all lenders in general again over the falling deposit mobilisation and increasing credit offtake, leading to asset liability mismatches, Governor Shaktikanta Das has said the Reserve Bank has is reviewing the liquidity coverage ratio framework to address the emerging issues.

- BENN KOCHUVEEDAN

"To meet the Basel III liquidity standards, deposit insurance and resolution tools, it's imperative that our banks put in place prudent liquidity management measures proactively. It has to be borne in mind that incorrect valuation of liquid assets can give a false sense of short-term liquidity resiliency, which is not desirable.