Under the present Regulations of the RBI Act interest has to be paid on bank deposits, but to permit interest-free banking the Central Bank has to amend the regulations
The Basel III framework, which was adopted in the wake of the 2008 global financial crisis to safeguard banks in case of stress, seeks a higher liquidity coverage ratio that requires banks to hold marketable high quality liquid assets.
Deputy Guv Anand Sinha said by getting hold of inflation growth will have better prospect.
Reserve Bank Deputy Governor Anand Sinha today said banks' asset quality has deteriorated in recent times due to the gloomy economic conditions but noted that there is enough capital with the lenders to take care of the situation
The RBI deputy governor said there are more downside risks on the macroeconomic front as the growth has slowed down partly because of the world situation.<br /><br /> <br /><br />