RBI's tighter liquidity norms credit positive for banks: Moody's

Moody's views the Reserve Bank of India's draft guidelines on enhancing banks' liquidity management as credit positive, despite a projected 15 percentage point drop in banks' liquidity coverage ratios (LCR). The new guidelines, which require banks to allocate an additional 5% reduction in the stability of retail deposits with internet and mobile banking access, are expected to improve banks' resilience against unexpected deposit outflows.