The Reserve Bank on Wednesday proposed that banks monitor mismatches between their assets and liabilities more frequently for a sharper assessment of liquidity management and providing stimulus to term money market.
At present, banks have to report to RBI every month about mismatches. Presently banks have to provide statements regarding mismatches for 1-14 days and 15-28 days. Banks are not supposed to have an asset-liability gap of more than 20 per cent of their cash outflows.

In the proposed guidelines, RBI has decided to split the requirement for providing statement of mismatches for 1-14 day period into three “time buckets” the next day of submitting the statement to the central bank, 2-7 days and 8-14 days. Banks would continue to report monthly about the mismatch. The frequency of reporting would be fortnightly from April 1, 2008, RBI said.