The Reserve Bank of India on Friday slashed the reverse repo rate, or the rate at which banks park their funds with the central bank, by 25 basis points to 3.75 per cent in order to force financial institutions to lend more. The central bank also eased the liquidity coverage ratio (LCR) requirement of scheduled commercial banks from 100 per cent to 80 per cent with immediate effect. LCR is the proportion of highly liquid assets held by a bank to ensure their ongoing ability to meet short-term obligations.
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- https://www.hindustantimes.com/editorials/the-central-bank-steps-in/story-GjkXqSJMJi4r6mLEyJdnOL.html
- https://indianexpress.com/article/explained/explained-how-rbi-is-handling-the-great-lockdown-6366699/
- https://indianexpress.com/article/opinion/editorials/reserve-bank-of-india-coronavirus-covid-19-liquidity-rate-repo-6367345/
