Module: | Run-off Rates & Cash Outflows/Inflows
Q7: How are "Cash Outflows" calculated for the following specific deposit categories?
1. Stable Retail Deposits: Insured transactional/relationship accounts.
2. Internet & Mobile Banking (IMB) Deposits: Additional run-off factor applicable from April 2026.
3. Small Business Customers (SBC): Treated as retail if aggregated funding is up to ₹7.5 crore.
4. Operational Deposits: Excess balances not required for operations.
2. Internet & Mobile Banking (IMB) Deposits: Additional run-off factor applicable from April 2026.
3. Small Business Customers (SBC): Treated as retail if aggregated funding is up to ₹7.5 crore.
4. Operational Deposits: Excess balances not required for operations.
✅ Correct Answer: A
In the context of Liquidity Coverage Ratio (LCR), this question examines the nuances of run-off rates.
Stable insured deposits generally have a 5 percent run-off.
Recent updates introduce an extra 2.5 percent run-off for IMB-enabled accounts from 2026.
SBC deposits are treated as retail up to 7.5 crore rupees.
Excess operational balances are treated as non-operational, increasing Net Cash Outflows.
Stable insured deposits generally have a 5 percent run-off.
Recent updates introduce an extra 2.5 percent run-off for IMB-enabled accounts from 2026.
SBC deposits are treated as retail up to 7.5 crore rupees.
Excess operational balances are treated as non-operational, increasing Net Cash Outflows.