Thus, the Reserve Bank has put in place the frameworks of capital requirements, countercyclical capital buffer (CCCB), leverage ratio, Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)3. More recently guidelines on large exposures were issued which became effective from April 1, 2019. 11. Another episode of stress witnessed across EMEs including India was during the taper talk period of mid-2013.
The Indian economy was vulnerable due to the then prevailing high inflation of around 10 per cent and large current account deficit at 4.7 per cent of GDP.