RBI to delay higher digital deposit buffer for banks, governor says

Feb 7, 2025

Synopsis
India's central bank governor announced a one-year deferral, until March 2026, for the proposal requiring banks to set aside more funds for digitally-linked deposits. The RBI will further review the norms due to the feedback received to avoid disruptions. Additional review time is also needed for draft guidelines on expected credit loss and project financing.

The Reserve Bank of India (RBI) governor on Friday said the implementation of a proposal that mandates lenders set aside more funds for digitally-linked deposits will be deferred at least by a year to March 2026.

"(The) impact analysis of norms have been done but we are reviewing it again based on feedback received," Sanjay Malhotra said. "We don't want to cause any disruption from implementation of new norms."

In July, the RBI had proposed proposed that banks set aside an additional 5% 'run-off factor' on digitally accessible retail deposits to better manage risks in case of quick and heavy withdrawals via internet or mobile banking.that banks set aside

The RBI will also need more time to review the draft guidelines on expected credit loss and project financing, Malhotra said.

[The Economic Times]