Indian Lenders Seek RBI Leeway on Liquidity Rules Amid Surging Loan Demand

• Indian lenders have requested the Reserve Bank of India (RBI) to relax liquidity rules to unlock more funds for growth.
• Banks aim to free up cash parked with the RBI for short-term financial stress requirements.
• Lenders also seek an early rollout of revised liquidity rules allowing them to hold fewer government bonds.
• They propose lowering the minimum maturity of infrastructure bonds from seven years to raise more funds.
• The move comes as loan demand outpaces deposit growth, with deposits up 10.6% and credit up 13.1% year-on-year.