The Reserve Bank of India (RBI) has recommended banks to keep investments in liquid funds below the new limit of 10% of their net-worth after October 2011, Economic Times reports. The banks will have to focus on raising funds through individual fixed deposits and mutual funds to turn to retail clients to build assets under management. The limit, to which investments in liquid schemes have to be cut, is expected to be around 5-6% of lenders’ net-worth. The banks have to decrease exposure to liquid schemes in a phased manner over the next five months.

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