Overview

• The Reserve Bank of India has raised run-off rates to 7.5% for stable retail deposits and 12.5% for less stable deposits, effective April 1, 2026.
• Internet and mobile banking-enabled retail deposits will face an additional 2.5 percentage point run-off factor under the revised framework.
• Level 1 High-Quality Liquid Assets (HQLA) like government securities will now be subject to valuation haircuts based on LAF and MSF margin requirements.
• Run-off rates for funding from non-financial entities, such as trusts and partnerships, have been reduced to 40% from the current 100%.
• RBI's impact analysis projects a 6 percentage-point improvement in aggregate LCR, with all banks expected to comfortably meet regulatory requirements.