RBI Easing LCR for banks | PSU Bank Index up by 1.8%

The Reserve Bank of India (RBI) has announced new rules to make it easier for banks to manage their cash (liquidity). Earlier, banks were told to assume that 5% of mobile/internet banking customers might quickly withdraw their money in a crisis. Now, RBI has relaxed this rule, asking them to assume only 2.5% more risk instead of 5%. This gives banks more flexibility and improves their financial outlook. Because of this positive news: HDFC Bank, Kotak Mahindra Bank, and ICICI Bank stocks have gone up, showing investor confidence. For example, HDFC Bank rose nearly 2%, and Kotak Mahindra by 1.93%. Also, RBI said that trusts, partnerships, and other such groups that give money to banks are now considered less risky, so banks won’t need to keep as much backup cash for them. In short: RBI gave banks some relief on cash management rules, so investors are feeling good, and bank shares are rising.