Indian Lenders Said to Ask RBI for Leeway on Liquidity Rules

Indian lenders asked the central bank to relax a number of liquidity rules to allow them unlock more funds for growth, according to people familiar with the matter, as demand for loans grows faster than deposits.

Lenders are seeking permission to free up some of the cash they have to park with the Reserve Bank of India for short-term financial stress requirements, the people said, asking not to be identified as the discussions are private. Meetings between the RBI and several banks took place over the past two weeks, they said.