Policy ID: PCI/POL/09/2026-27 • Version 1.0 Owner: CFO / ALCO • Approver: Board of Directors Sources: ALM, REG • Review: Annual / regulatory change
Purpose and application
Funding and balance-sheet management; formal RBI requirements depend on category/size.
1. Governance:- The Board shall approve liquidity risk appetite, mismatch limits and contingency funding. ALCO shall manage funding maturity, pricing, liquidity buffers and interest- rate risk. Treasury shall provide reconciled information without double-counting uncertain inflows.
2. Cash-flow ladder:- Prepare contractual and behavioral cash-flow ladders covering loans, borrowings, investments and off-balance-sheet commitments. Discount collection assumptions for arrears and stress. Assess refinancing dependence and encumbered assets separately.
3. Limits and buffers:- Apply the applicable regulatory mismatch and LCR rules described in Annex B. Establish additional internal limits where RBI does not prescribe a ceiling. Keep sufficient unencumbered liquid assets; unauthorized public deposits are prohibited.
4. Stress and escalation:- Stress delayed collections, funding withdrawal, rate shocks and branch disruption. Escalate limit breaches to CFO/ALCO immediately. Activate contingency funding using pre-approved asset sales, committed lines and controlled disbursement reduction.
5. Reporting:- Treasury shall monitor liquidity daily and ALCO shall meet monthly as Company practice. Submit applicable RBI returns under the current supervisory returns Directions. Board review shall include stress results and remediation at least quarterly; policy review annually.
Source codes are linked to the Reference Register. Read with the common implementation controls and relevant annexes. Applicable law and RBI Directions prevail.