Overseas Rupee denominated bonds under ECB
The salient features of the framework for Rupee denominated bonds overseas under External Commercial Borrowing policy are as follows. Eligibility to borrow: All corporate or corporate body, Real Estate Investment Trust (REIT) and Infrastructure Investment Trusts (REITs) are eligible to borrow under ECB policy. Investors in bonds: Any investor from a Financial Action Task Force…
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Liquidity Risk Monitoring Tools – Net Stable Funding Ratio (NSFR)
The Net Stable Funding Ratio (NSFR) is a key component of the Basel III liquidity risk management framework, designed to promote long-term funding stability in banks. It complements the Liquidity Coverage Ratio (LCR) by addressing structural liquidity risk over a one-year horizon, thereby reducing banks’ reliance on volatile short-term funding. Purpose of the NSFR The…
Read article Key Aspects of the Basel III Liquidity Coverage Ratio (LCR) Framework
RBI on Monday July 21, 2025 through notification announced that “it has been decided to permit banks to reckon Government securities as Level 1 HQLA* under FALLCR** within the mandatory SLR requirement up to 16 percent of their NDTL, under Basel III Framework on Liquidity Standards. Consequently, the total HQLA carve-out from the mandatory SLR,…
Read article Reporting to the Reserve Bank of India (RBI) on Internal Controls: Fraud, Audit, and Compliance Framework
Banks and other regulated financial entities in India are required to adhere to comprehensive reporting obligations concerning internal controls, particularly in the areas of fraud detection, internal audit mechanisms, and compliance with regulatory guidelines issued by the Reserve Bank of India (RBI). These requirements are essential for ensuring systemic stability, operational resilience, and effective supervisory…
Read article Management Information System (MIS) in Banking: Functions, Benefits, and Applications
A Management Information System (MIS) in the banking sector refers to an integrated system designed to collect, process, analyze, and disseminate data to support strategic decision-making, operational planning, and effective control. MIS serves as a vital tool for enhancing efficiency, managing risks, ensuring regulatory compliance, and improving customer service within financial institutions. Key Functions of…
Broad Norms for Liquidity Management Across Currencies: Principles and Regulatory Expectations
Liquidity management across multiple currencies is a critical component of sound banking practice, particularly for banks engaged in international operations. Effective liquidity management ensures that a bank can meet its financial obligations in all operating currencies, even during periods of market stress. Regulatory frameworks emphasize the need for adequate high-quality liquid assets (HQLAs), diversification of…
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