The LCR and the NSFR Frameworks basically address this problem. 14. In the Indian context, any discussion on the LCR issue brings to the fore the fact that it runs parallel to SLR requirement. We have over a period of time reduced SLR and of the current level of 21.5%, a portion i.e.7 % is available for LCR as well.
There is always the contention that the parallel need to maintain SLR and LCR poses an additional burden on the banks in India. We are aware of this concern and already communicated our intention to reduce the SLR requirements in a phased manner. However, there are several factors that would have to be addressed before we can move further to address the potential overlap.