Banks Can Shift Excess Bonds From Held-to-Maturity 3 More Times in 2015: RBI
Mumbai: The Reserve Bank of India has allowed banks to shift their excess bond holdings to trading portfolios from the held-to-maturity (HTM) basket three more times in 2015 to adhere to its roadmap on HTM cut.
Usually banks are allowed to transfer bonds to and from HTM to available-for-sale and held-for-trading once a year in April.
The transfers can be done in January, July and September next year and will be excluded from the 5 per cent cap prescribed for selling or transferring securities to and from HTM in a year, the RBI said.
At the monetary policy review on September 30, the apex bank had prescribed the roadmap for lowering HTM gradually, starting from January till September.
Copyright @ Thomson Reuters 2014
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