RBI errs on the side of stability as volatile west keeps rest on edge

Also, to create a buffer to shield banks from adverse yield movements, RBI had advised banks to create an investment fluctuation reserve (IFR) with a desirable floor of IFR at 2% of the held-for-trading (HFT) and available for sale (AFS) portfolios. Moreover, RBI has uniformly applied capital and liquidity requirements to all banks, irrespective of their asset size and exposure.

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