INSUBCONTINENT EXCLUSIVE:
will set up an internal working group, which will suggest measures to simplify the current framework, last reviewed in 2014
The group is expected to submit the report by mid-July."It has been decided to constitute an internal working group to review
comprehensively the existing liquidity management framework and suggest measures, among others, to simplify the current liquidity management
framework; and clearly communicate the objectives, quantitative measures and toolkit of liquidity management by the RBI," the statement of
developmental and regulatory policies noted.Outlining the regulatory measures decided upon at the RBI monetary policy meet, the statement
observed that though the current liquidity management framework worked well this far, it had become somewhat complex.The assessment of
liquidity position by different market participants had varied markedly and was not always in sync with the actual systemic liquidity
position of the economy, it said.The RBI also decided to peg the minimum leverage rate at 4 per cent for "domestic systemically important
banks" and 3.5 per cent for other lenders, with a view to move towards harmonisation with Basel-III standards, which is a set of
also announced that a foreign exchange trading platform for retail participants developed by the Clearing Corporation of India (CCIL) was
ready and would be available for transactions from early August.The apex bank had in October 2017 issued a paper proposing to set up such an
electronic platform on which retail participants would be able to purchase and sell foreign currency at market clearing prices, while
ensuring fair and transparent pricing.The circular on the operational guidelines for the platform will be issued by the end of this month,
