Question

The balances with bank will be categorized in which time bucket in the ALM statement?

A 1-14 days Correct Answer Incorrect Answer
B 2-3 months Correct Answer Incorrect Answer
C 6-12 months Correct Answer Incorrect Answer
D 1-3 years Correct Answer Incorrect Answer
E >5 years Correct Answer Incorrect Answer

Solution

The following are included in 1-14 days time bucket: ·         cash – 1 – 14 days bucket ·         Balance with RBI over & above CRR 1 – 14 days bucket and CRR as per maturity of DTL. ·         Balances with other banks – Minimum balance required in 1 – 3 years bucket & remaining in 1 – 14 days bucket.

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