FCNR(B) surge: Inflows through special window to ease banks’ liquidity pressure

In the first quarter of FY27, revised liquidity coverage ratio (LCR) norms came into effect, reducing the assumed run-off rate on deposits from non-financial entities such as trusts, limited liability partnerships (LLPs), and partnerships to 40% from 100% earlier. The change lowered projected 30-day cash outflows for banks, providing flexibility to the LCR mandate.