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Assets and Liabilities are put into different time buckets based on several factors. Gaps are the difference between the total of assets and liabilities in different time buckets. It is required for various MIS purpose especially liquidity management.
In the context of Indian Banks , the mandatory requirement for the Gap management in the first four time buckets i,e (1 day,2-7 days,8-14 days,15-28 days ) are5%,10%,15%,20% respectively ( maximum gap )
