{"what_this_is":"The machine-readable twin of the BankPulse page for one RBI rulebook. Same points, same dates, same paragraph references as the page a person reads. RBI's own wording is not reproduced here: each point names the RBI paragraph, the character offset into the text BankPulse read and the sha256 of that text, so the claim can be checked against RBI's own document.","schema_version":1,"release_id":"d653cdb0a5","generated_at":"2026-09-15T00:33:59.117975+00:00","id":"md12949","title":"Reserve Bank of India (Non-Banking Financial Companies – Asset Liability Management) Directions, 2025 (Updated as on July 01, 2026)","document_kind":"Directions","page":"https://bankpulse.ai/rule/md12949","status":"In force","importance":{"code":"MR","label":"MUST READ","weight":"Must read","why":"Binding RBI Directions naming this institution class in the title","layer":"bankpulse_inference"},"applies_to":{"shown":"Finance companies","class_code":"NBFC","from":"the document's own title","layer":"bankpulse_inference"},"dates":{"prid":"md12949","mode":"four_dates_v1","published":{"label":"Published","value":"Nov 28, 2025","stated":true,"why":"The day RBI put this document out."},"effective":{"label":"Starts to apply","value":"","stated":false,"why":"Not stated separately in this document. Read the rule itself before you assume a start date."},"transition":{"label":"Time to get ready","value":"","stated":false,"why":"Cannot be worked out until the day it starts to apply is known."},"deadline":{"label":"Last date to act","value":"","stated":false,"why":"No date to act by was found in this document. Other dates may sit inside single paragraphs."},"sources":{"published":"doc_date in data/highlights/md12949.json","effective":"none held","transition":"none held","deadline":"none held"}},"rbi_source":{"url":"https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12949","document_date":"Nov 28, 2025","read_by_bankpulse":"2026-08-21 16:21:19 UTC","text_sha256":"5e3235d2833aee81297f7ac031e4c3261c0f429fc6c075694c18c75c834a8da3","word_count":6646,"standing_last_checked":"Standing checked on RBI’s Master Directions index, 15 September 2026, 5:58 am IST."},"counts":{"points_shown":103,"points_naming_an_rbi_paragraph":103,"points_stored":103,"actions":0,"amendments":0},"points":[{"n":1,"claim":"md12949-06b718a8","page_group":"Opening paragraphs","stored_section":"THE CORE IDEA","heading":"What this book does","plain_english":"This book sets how a non-banking financial company must manage its assets against its liabilities.","rbi_paragraph":"Opening paragraphs","rbi_char_offset":3547,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p1","layer":"bankpulse"},{"n":1,"claim":"md12949-37b879b5","page_group":"Chapter I. Preliminary","stored_section":"KEY DATES","heading":"Start date","plain_english":"These rules took effect from the date RBI issued them.","rbi_paragraph":"Para 2","rbi_char_offset":3800,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p2","layer":"bankpulse"},{"n":2,"claim":"md12949-f81524ef","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Who is covered","plain_english":"These rules bind deposit taking, investment, factoring, microfinance and infrastructure finance companies.","rbi_paragraph":"Para 3","rbi_char_offset":3883,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":["infrastructure-finance","microfinance"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p3","layer":"bankpulse"},{"n":3,"claim":"md12949-6acc2229","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Housing finance too","plain_english":"A housing finance company registered under the National Housing Bank Act is also covered.","rbi_paragraph":"Para 3","rbi_char_offset":4602,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":["housing-loan"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p4","layer":"bankpulse"},{"n":4,"claim":"md12949-f2d37cad","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Core investment companies","plain_english":"A core investment company follows every chapter except the one on the coverage ratio.","rbi_paragraph":"Para 4","rbi_char_offset":4675,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p5","layer":"bankpulse"},{"n":5,"claim":"md12949-46332018","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Who is left out","plain_english":"Mortgage guarantee companies, peer to peer lenders and account aggregators are outside these rules.","rbi_paragraph":"Para 5","rbi_char_offset":4810,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p6","layer":"bankpulse"},{"n":6,"claim":"md12949-141e3e9d","page_group":"Chapter I. Preliminary","stored_section":"WHAT CHANGES","heading":"What a defeasance period is","plain_english":"The defeasance period is the time needed to sell out of an investment position.","rbi_paragraph":"Para 6(1)","rbi_char_offset":5898,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p7","layer":"bankpulse"},{"n":7,"claim":"md12949-0dca0993","page_group":"Chapter I. Preliminary","stored_section":"WHAT CHANGES","heading":"What interest rate risk is","plain_english":"Interest rate risk is the harm a change in market rates can do.","rbi_paragraph":"Para 6(2)","rbi_char_offset":6028,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p8","layer":"bankpulse"},{"n":8,"claim":"md12949-7a413fa1","page_group":"Chapter I. Preliminary","stored_section":"WHAT CHANGES","heading":"What embedded options are","plain_english":"Embedded options are customers closing deposits early or repaying loans early.","rbi_paragraph":"Para 6(3)","rbi_char_offset":6153,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p9","layer":"bankpulse"},{"n":9,"claim":"md12949-9ffb92f4","page_group":"Chapter I. Preliminary","stored_section":"WHAT CHANGES","heading":"What secured funding is","plain_english":"Secured funding is a liability backed by named assets the borrower owns.","rbi_paragraph":"Para 6(5)","rbi_char_offset":6645,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p10","layer":"bankpulse"},{"n":10,"claim":"md12949-4e339966","page_group":"Chapter I. Preliminary","stored_section":"WHAT CHANGES","heading":"What a stress test is","plain_english":"A stress test checks the company's position under a severe but plausible scenario.","rbi_paragraph":"Para 6(6)","rbi_char_offset":6821,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p11","layer":"bankpulse"},{"n":11,"claim":"md12949-4338d3b5","page_group":"Chapter I. Preliminary","stored_section":"WHAT CHANGES","heading":"What unencumbered means","plain_english":"Unencumbered means the asset is free to sell, transfer or assign.","rbi_paragraph":"Para 6(7)","rbi_char_offset":6992,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p12","layer":"bankpulse"},{"n":12,"claim":"md12949-697ca4eb","page_group":"Chapter I. Preliminary","stored_section":"WHAT CHANGES","heading":"What liquidity means","plain_english":"Liquidity is the power to fund asset growth and meet cash calls on time.","rbi_paragraph":"Para 6(8)","rbi_char_offset":7166,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p13","layer":"bankpulse"},{"n":13,"claim":"md12949-9b11f610","page_group":"Chapter I. Preliminary","stored_section":"WHAT CHANGES","heading":"What liquidity risk means","plain_english":"Liquidity risk is being unable to meet dues without harming the company's position.","rbi_paragraph":"Para 6(9)","rbi_char_offset":7359,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p14","layer":"bankpulse"},{"n":14,"claim":"md12949-9c805314","page_group":"Chapter I. Preliminary","stored_section":"WHAT CHANGES","heading":"Words from the Acts","plain_english":"Any other word takes its meaning from the Banking Regulation Act or the RBI Act.","rbi_paragraph":"Para 7","rbi_char_offset":7673,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p15","layer":"bankpulse"},{"n":1,"claim":"md12949-0f088677","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO IT APPLIES TO","heading":"Small companies exempt","plain_english":"The liquidity risk chapter does not bind a company with assets under one hundred crore rupees.","rbi_paragraph":"Para 7","rbi_char_offset":8002,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"An NBFC with ₹80 crore of assets in its last audited balance sheet is outside this chapter. One with ₹150 crore is inside it. The line is ₹100 crore.","anchor":"https://bankpulse.ai/rule/md12949#p16","layer":"bankpulse"},{"n":2,"claim":"md12949-30553559","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Ninety day holding","plain_english":"A trading book holding period must not go beyond 90 days.","rbi_paragraph":"Para 37(3)","rbi_char_offset":20307,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A trading book position may be held for 90 days and no longer. One opened on 1 June is closed by 30 August. A position still open on day 91 breaks the rule.","anchor":"https://bankpulse.ai/rule/md12949#p17","layer":"bankpulse"},{"n":3,"claim":"md12949-8de219ee","page_group":"Chapter II. 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The running total is watched against them.","anchor":"https://bankpulse.ai/rule/md12949#p20","layer":"bankpulse"},{"n":6,"claim":"md12949-b0f3a550","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Six month short view","plain_english":"The company estimates its short liquidity profile from 1 day to 6 months.","rbi_paragraph":"Para 42","rbi_char_offset":22259,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p21","layer":"bankpulse"},{"n":7,"claim":"md12949-c363049a","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Set up a committee","plain_english":"The board must set up a committee headed by the chief executive or managing director.","rbi_paragraph":"Para 8","rbi_char_offset":8412,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p22","layer":"bankpulse"},{"n":8,"claim":"md12949-5e512c51","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"A dynamic framework","plain_english":"The system must measure and manage liquidity, interest rate, equity and currency risk.","rbi_paragraph":"Para 12","rbi_char_offset":9253,"weight":"DO IT","role":"Technology","team":null,"products_covered":["foreign-exchange"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p23","layer":"bankpulse"},{"n":9,"claim":"md12949-caf19cb1","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"A forward looking system","plain_english":"The information system must give timely, forward looking liquidity facts to the board.","rbi_paragraph":"Para 14","rbi_char_offset":10142,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p24","layer":"bankpulse"},{"n":10,"claim":"md12949-209cdeba","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Quarterly public disclosure","plain_english":"The company must publish the liquidity disclosure on its own website every quarter.","rbi_paragraph":"Para 15","rbi_char_offset":10477,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p25","layer":"bankpulse"},{"n":11,"claim":"md12949-bb8868d1","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Independent review","plain_english":"Management must have an independent party review the liquidity process regularly.","rbi_paragraph":"Para 19","rbi_char_offset":12278,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p26","layer":"bankpulse"},{"n":12,"claim":"md12949-e066a86d","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Price the liquidity","plain_english":"The company should measure liquidity cost and build it into product pricing.","rbi_paragraph":"Para 24","rbi_char_offset":13955,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p27","layer":"bankpulse"},{"n":13,"claim":"md12949-83ce56a5","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Project the cash flows","plain_english":"The process must project cash flows from assets, liabilities and off balance sheet items.","rbi_paragraph":"Para 25","rbi_char_offset":14311,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p28","layer":"bankpulse"},{"n":14,"claim":"md12949-e49072c1","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Spread the funding","plain_english":"The funding plan must spread sources and tenors and keep lender relations strong.","rbi_paragraph":"Para 26","rbi_char_offset":14705,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p29","layer":"bankpulse"},{"n":15,"claim":"md12949-ac1f5e32","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Test the fund raising","plain_english":"The company must regularly test how fast it can raise money from each source.","rbi_paragraph":"Para 26","rbi_char_offset":14995,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p30","layer":"bankpulse"},{"n":16,"claim":"md12949-c777cd54","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Manage the collateral","plain_english":"The company must track which collateral is free and where each piece is held.","rbi_paragraph":"Para 27","rbi_char_offset":15349,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p31","layer":"bankpulse"},{"n":17,"claim":"md12949-aaa3427f","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Stress test regularly","plain_english":"Stress tests must run regularly for company specific and market wide scenarios.","rbi_paragraph":"Para 28","rbi_char_offset":15885,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p32","layer":"bankpulse"},{"n":18,"claim":"md12949-44feaf80","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"A contingency funding plan","plain_english":"A contingency funding plan must answer a severe break in the ability to fund.","rbi_paragraph":"Para 29","rbi_char_offset":16316,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p33","layer":"bankpulse"},{"n":19,"claim":"md12949-d99474b5","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Watch the key ratios","plain_english":"The company must watch critical liquidity ratios against limits its board sets.","rbi_paragraph":"Para 43","rbi_char_offset":22567,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p34","layer":"bankpulse"},{"n":20,"claim":"md12949-9252bb69","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Foreign money on the books","plain_english":"Where the books carry foreign assets or liabilities, the board must prepare for that risk.","rbi_paragraph":"Para 44","rbi_char_offset":23245,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p35","layer":"bankpulse"},{"n":21,"claim":"md12949-62cd7437","page_group":"Chapter II. 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Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Tie limits to size","plain_english":"Those limits must relate to total assets, earning assets or equity.","rbi_paragraph":"Para 52","rbi_char_offset":26980,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p38","layer":"bankpulse"},{"n":24,"claim":"md12949-c869433b","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO IT APPLIES TO","heading":"Exempt but encouraged","plain_english":"A company that is exempt is still encouraged to follow the chapter by choice.","rbi_paragraph":"Para 7","rbi_char_offset":8143,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p39","layer":"bankpulse"},{"n":25,"claim":"md12949-8c0b16c0","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"The board owns the system","plain_english":"The board carries overall responsibility for putting the asset liability system in place.","rbi_paragraph":"Para 8","rbi_char_offset":8287,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p40","layer":"bankpulse"},{"n":26,"claim":"md12949-135393e3","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Approve the ratio limits","plain_english":"The board approves the internal limits for the critical liquidity ratios.","rbi_paragraph":"Para 10","rbi_char_offset":8908,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p41","layer":"bankpulse"},{"n":27,"claim":"md12949-fa112d3b","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Approve the gap limits","plain_english":"The board approves careful limits on each gap in the set maturity buckets.","rbi_paragraph":"Para 11","rbi_char_offset":9029,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p42","layer":"bankpulse"},{"n":28,"claim":"md12949-9d51a007","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Three pillars","plain_english":"The system rests on three pillars: information systems, organisation and process.","rbi_paragraph":"Para 13","rbi_char_offset":9673,"weight":"BACKGROUND","role":"Technology","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p43","layer":"bankpulse"},{"n":29,"claim":"md12949-d1c11c9d","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Also in the accounts","plain_english":"The same disclosure goes into the notes to the annual financial statements.","rbi_paragraph":"Para 15","rbi_char_offset":10596,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p44","layer":"bankpulse"},{"n":30,"claim":"md12949-c25d3347","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Chief risk officer joins","plain_english":"Where the company has a chief risk officer, that officer joins the liquidity work.","rbi_paragraph":"Para 16","rbi_char_offset":10946,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p45","layer":"bankpulse"},{"n":31,"claim":"md12949-0c5645fb","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Who sits on the committee","plain_english":"The committee holds the heads of investment, credit, treasury risk and economic research.","rbi_paragraph":"Para 17","rbi_char_offset":11171,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p46","layer":"bankpulse"},{"n":32,"claim":"md12949-d61655e4","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"A support group","plain_english":"A support group of working staff studies and reports the liquidity risk profile.","rbi_paragraph":"Para 18","rbi_char_offset":11777,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p47","layer":"bankpulse"},{"n":33,"claim":"md12949-13de7ca1","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Internal controls","plain_english":"The company needs internal controls and procedures to ensure the policies are followed.","rbi_paragraph":"Para 19","rbi_char_offset":12056,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p48","layer":"bankpulse"},{"n":34,"claim":"md12949-0f8d9c8e","page_group":"Chapter II. 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Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Top management sets strategy","plain_english":"Top management builds the strategy to manage liquidity risk within the set tolerance.","rbi_paragraph":"Para 23","rbi_char_offset":13767,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p51","layer":"bankpulse"},{"n":37,"claim":"md12949-676e9950","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Watch the off book risk","plain_english":"Special care goes to special purpose vehicles, derivatives, guarantees and commitments.","rbi_paragraph":"Para 25","rbi_char_offset":14500,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p52","layer":"bankpulse"},{"n":38,"claim":"md12949-0e418f0c","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"The group finance chief","plain_english":"The group chief financial officer keeps liquidity processes for every company in the group.","rbi_paragraph":"Para 30","rbi_char_offset":16995,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p53","layer":"bankpulse"},{"n":39,"claim":"md12949-8e5a4d4c","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"The maturity ladder","plain_english":"The maturity ladder is the standard tool for measuring net funding needs.","rbi_paragraph":"Para 31","rbi_char_offset":17718,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p54","layer":"bankpulse"},{"n":40,"claim":"md12949-30c8bd3f","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"A maturity profile","plain_english":"The company prepares a maturity profile placing future cash flows in time buckets.","rbi_paragraph":"Para 32","rbi_char_offset":18018,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p55","layer":"bankpulse"},{"n":41,"claim":"md12949-6ee7cb9e","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Two kinds of security","plain_english":"A deposit taking company splits its securities into mandatory and other securities.","rbi_paragraph":"Para 33(1)","rbi_char_offset":18553,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p56","layer":"bankpulse"},{"n":42,"claim":"md12949-4addeb9a","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Surplus is not mandatory","plain_english":"Securities held above the required amount count as non-mandatory.","rbi_paragraph":"Para 33(2)","rbi_char_offset":18716,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p57","layer":"bankpulse"},{"n":43,"claim":"md12949-fac9d8d9","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"No deposits, none mandatory","plain_english":"Where the company takes no public deposit, every security is non-mandatory.","rbi_paragraph":"Para 34","rbi_char_offset":18816,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p58","layer":"bankpulse"},{"n":44,"claim":"md12949-f477f3c9","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Place mandatory freely","plain_english":"A deposit taking company may place mandatory securities in any bucket it thinks fit.","rbi_paragraph":"Para 35(1)","rbi_char_offset":19015,"weight":"BACKGROUND","role":"Branch","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p59","layer":"bankpulse"},{"n":45,"claim":"md12949-027adddb","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Unlisted go longest","plain_english":"An unlisted security with no fixed maturity goes in the longest bucket.","rbi_paragraph":"Para 35(2)","rbi_char_offset":19451,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p60","layer":"bankpulse"},{"n":46,"claim":"md12949-6ea8a588","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Mark them to market","plain_english":"Mandatory securities and listed securities are marked to market for this system.","rbi_paragraph":"Para 36","rbi_char_offset":19748,"weight":"BACKGROUND","role":"Technology","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p61","layer":"bankpulse"},{"n":47,"claim":"md12949-00b8a3cd","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"The trading book option","plain_english":"The company may instead treat part of its portfolio as a trading book.","rbi_paragraph":"Para 37","rbi_char_offset":20047,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p62","layer":"bankpulse"},{"n":48,"claim":"md12949-794267f4","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Board signs the trading book","plain_english":"The board or the committee approves the size, mix, holding period and cut loss.","rbi_paragraph":"Para 38","rbi_char_offset":20722,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p63","layer":"bankpulse"},{"n":49,"claim":"md12949-73bfdf48","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Same for group accounts","plain_english":"The same running gap limits apply to the consolidated operations.","rbi_paragraph":"Para 40","rbi_char_offset":21926,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p64","layer":"bankpulse"},{"n":50,"claim":"md12949-1c668e13","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"How to fill the statement","plain_english":"Cash flows go on the maturity ladder by when they are expected to arrive.","rbi_paragraph":"Para 41","rbi_char_offset":22026,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p65","layer":"bankpulse"},{"n":51,"claim":"md12949-0d585748","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"In and out defined","plain_english":"A maturing liability is money going out and a maturing asset is money coming in.","rbi_paragraph":"Para 41","rbi_char_offset":22164,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p66","layer":"bankpulse"},{"n":52,"claim":"md12949-68dd78c3","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Which ratios to watch","plain_english":"The list holds short term liability to total assets and commercial paper to total assets.","rbi_paragraph":"Para 43","rbi_char_offset":22876,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p67","layer":"bankpulse"},{"n":53,"claim":"md12949-81fae708","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Start with the gap","plain_english":"The company may start with the traditional gap approach to measure rate risk.","rbi_paragraph":"Para 46","rbi_char_offset":24317,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p68","layer":"bankpulse"},{"n":54,"claim":"md12949-3ae22d83","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"What is rate sensitive","plain_english":"An item is rate sensitive if it pays, reprices or can be repaid early.","rbi_paragraph":"Para 47","rbi_char_offset":24881,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p69","layer":"bankpulse"},{"n":55,"claim":"md12949-7574eeb0","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Floating advances count","plain_english":"Advances that carry a floating rate count as rate sensitive.","rbi_paragraph":"Para 48","rbi_char_offset":26067,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p70","layer":"bankpulse"},{"n":56,"claim":"md12949-8e30aecb","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Buckets for the gaps","plain_english":"Gaps are identified in set time buckets, with one bucket for non sensitive items.","rbi_paragraph":"Para 49","rbi_char_offset":26161,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p71","layer":"bankpulse"},{"n":57,"claim":"md12949-8c6f65a7","page_group":"Chapter II. 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Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Send that note too","plain_english":"That note, once approved, also goes to the regional supervision office of RBI.","rbi_paragraph":"Para 54","rbi_char_offset":27791,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p74","layer":"bankpulse"},{"n":60,"claim":"md12949-fa9d0d96","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Transfer pricing inside","plain_english":"An internal transfer price is needed to run the system well.","rbi_paragraph":"Para 56","rbi_char_offset":28694,"weight":"BACKGROUND","role":"Technology","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p75","layer":"bankpulse"},{"n":61,"claim":"md12949-3143d33f","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHO SHOULD ACT","heading":"Two returns to file","plain_english":"The company files a short term dynamic liquidity return and a structural liquidity return.","rbi_paragraph":"Para 57","rbi_char_offset":29298,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p76","layer":"bankpulse"},{"n":62,"claim":"md12949-28a48dc1","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"KEY DATES","heading":"The quarterly return","plain_english":"The short term dynamic liquidity return goes in every quarter.","rbi_paragraph":"Para 57(1)","rbi_char_offset":29346,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p77","layer":"bankpulse"},{"n":63,"claim":"md12949-f49d918c","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"KEY DATES","heading":"The monthly return","plain_english":"The structural liquidity and rate sensitivity return goes in every month.","rbi_paragraph":"Para 57(2)","rbi_char_offset":29426,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p78","layer":"bankpulse"},{"n":64,"claim":"md12949-7932343a","page_group":"Chapter II. Liquidity Risk Management Framework","stored_section":"WHAT CHANGES","heading":"Where the timelines live","plain_english":"Filing timelines come from RBI's rules on filing supervisory returns.","rbi_paragraph":"Para 58","rbi_char_offset":29518,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p79","layer":"bankpulse"},{"n":1,"claim":"md12949-3d09b849","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"IMPACT","heading":"Keep the ratio at hundred","plain_english":"The liquidity coverage ratio must stay at 100 per cent or more at all times.","rbi_paragraph":"Para 62","rbi_char_offset":30192,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p80","layer":"bankpulse"},{"n":2,"claim":"md12949-ab8c4f1b","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"IMPACT","heading":"Fifteen per cent haircut","plain_english":"A 15 per cent haircut applies to certain sovereign claims and highly rated bonds.","rbi_paragraph":"Para 69","rbi_char_offset":34280,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p81","layer":"bankpulse"},{"n":3,"claim":"md12949-9d6d9cc5","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"IMPACT","heading":"Fifty per cent haircut","plain_english":"A 50 per cent haircut applies to weaker sovereign claims and index equity shares.","rbi_paragraph":"Para 70","rbi_char_offset":34945,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p82","layer":"bankpulse"},{"n":4,"claim":"md12949-4e74eaf6","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"WHAT CHANGES","heading":"Thirty days of grace","plain_english":"If an asset stops qualifying it may stay in the stock for 30 more days.","rbi_paragraph":"Para 74","rbi_char_offset":37606,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p83","layer":"bankpulse"},{"n":5,"claim":"md12949-4620df50","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"WHAT CHANGES","heading":"What net outflow means","plain_english":"Net outflow is expected money out less expected money in over 30 days.","rbi_paragraph":"Para 75","rbi_char_offset":37810,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p84","layer":"bankpulse"},{"n":6,"claim":"md12949-23eaf510","page_group":"Chapter III. 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Liquidity Coverage Ratio","stored_section":"WHO SHOULD ACT","heading":"Tell RBI at once","plain_english":"Such use must be reported to supervision at once, with reasons and repair steps.","rbi_paragraph":"Para 62","rbi_char_offset":30520,"weight":"DO IT","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p89","layer":"bankpulse"},{"n":11,"claim":"md12949-27f00d6b","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"WHAT CHANGES","heading":"Always ready to sell","plain_english":"The assets must be free and ready to turn into cash at any time.","rbi_paragraph":"Para 72(1)","rbi_char_offset":36737,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p90","layer":"bankpulse"},{"n":12,"claim":"md12949-9913f719","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"WHO SHOULD ACT","heading":"Test the sale","plain_english":"The company must sell or repo a part now and then to test saleability.","rbi_paragraph":"Para 73","rbi_char_offset":37213,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p91","layer":"bankpulse"},{"n":13,"claim":"md12949-072c3099","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"WHO SHOULD ACT","heading":"Disclose the ratio","plain_english":"The company must disclose its liquidity coverage ratio every quarter.","rbi_paragraph":"Para 78","rbi_char_offset":41545,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p92","layer":"bankpulse"},{"n":14,"claim":"md12949-e9c3ff6f","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"WHAT CHANGES","heading":"You may dip in stress","plain_english":"In real stress the company may use the stock and let the ratio fall.","rbi_paragraph":"Para 62","rbi_char_offset":30357,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p93","layer":"bankpulse"},{"n":15,"claim":"md12949-2d8cffd6","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"WHAT CHANGES","heading":"What the stress assumes","plain_english":"The scenario mixes a shock to the company with a shock to the whole market.","rbi_paragraph":"Para 63","rbi_char_offset":30718,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p94","layer":"bankpulse"},{"n":16,"claim":"md12949-0b6f0ca9","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"WHAT CHANGES","heading":"What counts as liquid","plain_english":"Liquid assets are those sold or turned into cash with little loss of value.","rbi_paragraph":"Para 64","rbi_char_offset":31715,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p95","layer":"bankpulse"},{"n":17,"claim":"md12949-fcaa5ea8","page_group":"Chapter III. Liquidity Coverage Ratio","stored_section":"WHAT CHANGES","heading":"Two sets of traits","plain_english":"Such assets need sound basic traits and a real, active and deep market.","rbi_paragraph":"Para 66","rbi_char_offset":32599,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p96","layer":"bankpulse"},{"n":18,"claim":"md12949-df767475","page_group":"Chapter III. 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Repeal and Other Provisions","stored_section":"WHAT IT REPLACES","heading":"Earlier action stands","plain_english":"What was done or begun under the old rules is still ruled by them.","rbi_paragraph":"Para 80","rbi_char_offset":42262,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A show cause notice was issued under the old rules last year. The repeal does not move it. Any action taken or initiated under the repealed directions is still governed by them. The new rulebook applies to what comes after.","anchor":"https://bankpulse.ai/rule/md12949#p101","layer":"bankpulse"},{"n":3,"claim":"md12949-9d276afe","page_group":"Chapter IV. Repeal and Other Provisions","stored_section":"WHAT CHANGES","heading":"Adds to other law","plain_english":"These rules add to other laws in force. They take nothing away.","rbi_paragraph":"Para 81","rbi_char_offset":43330,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A bank follows these Directions and thinks the matter is closed. It is not. Any other laws, rules, regulations or directions in force still apply on top. Where another one asks for more, the bank does the more.","anchor":"https://bankpulse.ai/rule/md12949#p102","layer":"bankpulse"},{"n":4,"claim":"md12949-383b10a3","page_group":"Chapter IV. Repeal and Other Provisions","stored_section":"WHO SHOULD ACT","heading":"RBI's reading is final","plain_english":"RBI may clear up doubts, and its reading of any clause is final.","rbi_paragraph":"Para 82","rbi_char_offset":43535,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12949#p103","layer":"bankpulse"}],"actions":[],"amendments":[],"layers":{"rbi_source":"Facts taken from RBI's own document.","bankpulse":"BankPulse's plain-English summary of RBI's document.","bankpulse_inference":"BankPulse's own inference, not stated by RBI."},"rbi_wording_not_included":"By design. BankPulse never republishes RBI's exact sentences. Use rbi_paragraph with rbi_source.url to read RBI's own words.","terms":"BankPulse's plain-English summaries are BankPulse's own work. The underlying regulation is the Reserve Bank of India's. Always check the RBI document named in rbi_source before acting."}