6.2.6.2 Treatment of Lien Marked Deposits

When all the conditions mentioned in the guidelines are satisfied, the encumbered portion of lien marked deposits is excluded and hence receives a 0% factor. The unencumbered portion of the lien marked deposits is included and receives appropriate run off rate as applicable.

To cater to lien marked deposits, the following based measures are used in the business assumptions.

• Unencumbered stable balance: This measure populates the portion of stable amount, which is unencumbered.
• Unencumbered less stable balance: This measure populates the portion of less stable amount, which is unencumbered.
• Encumbered balance: This measure populates the encumbered amount of the deposit.

See Regulations Addressed through Business Assumptions for details of the pre-seeded assumptions on lien marked deposits.