CURRENT AFFAIRS

2019

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
RBI has recently tweaked LCR norms to boost liquidity. What does ’LCR’ stands for?
A
Liquidity Coverage Ratio
B
Liquidity Carbon Ratio
C
Liquidity Commodity Ratio
D
Liquidity Calculative Ratio
Explanation: 

Detailed explanation-1: -Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR) RBI/2022-23/25. DOR.LRG.REC.19/21.04.098/2022-23. April 18, 2022.

Detailed explanation-2: -Liquidity Cover Ratio (LCR) requires a bank to maintain a certain stock of High-Quality Liquid Assets (HQLA) to help it weather a stressful period, like the financial crisis of 2008. It helps the bank stay afloat during a financial crisis, at least until the government or the central bank can come to its rescue.

Detailed explanation-3: -Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR)

Detailed explanation-4: -Liquidity Coverage Ratio (LCR)= HQLA/ Total net cash outflows over the next 30 calendar Data must be presented as simple averages of daily observations with effect from the financial year ending March 31, 2022.

Detailed explanation-5: -Least Cost Routing (LCR) or ‘merchant-choice routing’ is when a payment is routed via the cheapest option for a merchant when a customer makes a contactless dual-network debit card transaction. LCR occurs either through Visa, Mastercard, or eftpos.

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