Banks Seek RBI Clarification on Forex Measures as Lenders Flag Liquidity and Cost Concerns
Indian banks have sought detailed clarification from the Reserve Bank of India on the implementation of its new currency-supporting measures, with lenders pressing for guidance on how foreign exchange risk reserves should be calculated and how those balances will affect liquidity ratios. They are also asking how costs will be passed on to customers, how exposure limits will be measured, and whether certain cash reserves can be treated as high-quality liquid assets.
