Maximum Cumulative Outflow(MCO) guidelines control the net outflow ( Inflow from asset maturity minus outflow from liability maturity) over the following periods:
i) Overnight
ii) One week
iii) One month
MCO up to 1 month bucket should not exceed 10% of balance sheet amount to avoid funding mismatch (it may vary according to the volume of Assets and Liabilities of a Bank.
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