Mumbai, April 21 -- In a huge relief to the banking system, the Reserve Bank of India has allowed banks to set aside a lower stock of liquid assets against deposits raised through digital channels, in the event of a potential run on banks.

In the final guidelines on liquidity coverage ratio (LCR) released on Monday, RBI said that banks need to assign a run-off factor of only 7.5% on these retail deposits instead of the 10% proposed in the draft guidelines.

Run-offs happen when individuals or businesses withdraw their deposits, which banks do not anticipate. Stable retail deposits enabled with internet and mobile banking (IMB) will have a 7.5% run-off factor, and less stable deposits will have a 12.5% run-off factor, as against 5% and 10...