MUMBAI — The Reserve Bank of India (RBI) on Thursday issued a draft circular on the Basel III framework on liquidity standards, which will require banks to set aside more funds to cover their risks.  The RBI said banking has undergone rapid transformation in recent years. While increased usage of technology has facilitated the ability to make instantaneous bank transfers and withdrawals, it has also led to a concomitant increase in risks, requiring proactive management. It said that it has reviewed the Liquidity Coverage Ratio (LCR) framework to increase the resilience of banks. The RBI circular states: “Banks shall assign an additional 5 per cent run-off factor for retail deposits which are enabled with internet and mobile banking facilities (IMB) i.e., stable retail deposits enabled with IMB shall have 10 per cent run-off factor and less stable deposits enabled with IMB shall have 15 per cent run-off factor.” Unsecured wholesale funding provided by non-financial small business customers should be treated in accordance with the treatment of retail deposits, the draft circular said. Level 1 high-quality liquid assets (HQLA) in the form of Government securities should be valued at an amount not greater than their current market value, adjusted for applicable...