On 9 June 2014, The Reserve Bank of India (‘RBI’) issued a circular titled “Guidelines on Liquidity Coverage Ratio (‘LCR’), Liquidity Risk Monitoring Tools and LCR Disclosure Standards” wherein it stated that LCR will be introduced in a phased manner starting with minimum requirement of 60% from 1 January 2015 and reaching minimum 100% by 1 January 2019. LCR, as we all understand, is a regulatory requirement and a key component of the Basel III framework. This ratio seeks to establish that banks have adequate high quality liquid assets to withstand any acute stress scenario lasting for 30 days.