How to verify if the bank is in a good liquidity position or not??? Are there any RBI rules on liquidity to be maintained by bank?? If any, how do we verify that during the audit?
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Quick Summary
This discussion explores how to determine if a bank is in a healthy liquidity position. It highlights the importance of verifying compliance with Reserve Bank of India (RBI) rules, including Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). The conversation also touches upon capital adequacy ratios and Basel norms as crucial elements in safeguarding the banking sector against liquidity crunches, particularly relevant during audits.