5.2.8 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.

Outflow factors as for other products and dimensional combinations are defined in the form of business assumptions. To cater to lien marked deposits, the following new based measures are introduced in the business assumptions.

• Unencumbered stable balance: This measure populates the minimum of unencumbered amount and stable amount.
• Unencumbered less stable balance: This measure populates the minimum of unencumbered amount and less stable amount.
• 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.