We have nevertheless argued our case and for now they stay as HQLA1. I am mentioning this to only request you to moderate your suggestions for changes that do not violate the basic Basel rules. With the advent of LCR under Basel III, there is a growing apprehension that maintaining such high liquidity, given the SLR requirements in India, may be difficult for banks.
In fact, after the issuance of the guidelines, banks have been asking for doing away with SLR. At the time of introducing LCR, it was considered prudent to continue with SLR. Going forward, the LCR will increase to 100% of the required level by 2019.