Liquidity management gets new guidelines from the RBI.

The Reserve Bank of India (RBI) has issued draft guidelines on liquidity management for the Non-Banking Finance Companies (NBFCS) and proposed a liquidity coverage ratio for large NBFCS covering all deposit-taking NBFCS and non-deposit taking NBFCS with an asset size of 5,000 crore and above. Here is a look at what it means and how it will impact you: The key takeaway from the draft guidelines are that a bank-like liquidity coverage ratio (LCR) for NBFCS to be put in place, granular management of asset liability mismatch and board-led liquidity policies or monitoring.

"The guidelines require NBFCS to hold adequate level of high quality liquid assets (to cover the estimated...