Mumbai, November 5: In an effort to tighten the Asset Liability Management framework and strengthen non-banking financial companies (NBFCs), the Reserve Bank of India (RBI) recently decided to revise and extant risk management guidelines on liquidity for the same. According to the final guidelines, all non-deposit taking NBFCs with asset size of Rs. 100 Crore and above are expected to monitor their cumulative mismatches across all time buckets (1-7 days, 8-14 days, and 15-30 days) upto one year with the board’s approval. The apex bank also wants NBFCs to undertake a liquidity risk monitoring metrics, which would aid in capturing any strains in liquidity position, if any. Such tools should cover funding details by counter party. Further, RBI has also emphasised the need for certain early waning market-based indicators including, book-to-equity ratio, coupon on debts raised, breaches and regulatory penalties for breaches in regulatory liquidity requirements.