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Large exposures framework: Basel committee lauds RBI on strict rules

In India, the LEF applies to all banks, apart from the regional rural banks

Liquidity management tool: RBI may have to balance old norms with the new

The Reserve Bank of India’s (RBI) rules on large exposures framework (LEF) are stricter than what the Basel committee recommends, according to a regulatory consistency assessment programme (RCAP) conducted by the Basel committee on banking supervision. In India, the LEF applies to all banks, apart from the regional rural banks.  According to the RBI norms, the total exposure of a bank to a single entity should not be more than 20 per cent of the Tier- 1 capital. the Basel norms, considered the benchmark, suggest exposure of up to 25 per cent to a single ...