Is there any flexibility in the cash component requirement?

Is there any flexibility in the cash component requirement?

While the minimum requirement is 50% of the margin, you can choose to maintain a higher percentage of cash component to avoid potential deficiencies and interest charges.

Illustrative table appended below considering various scenarios:


Scenario

Non-cash collateral

Cash collateral

Interest Levied

A

100%

0%

On 50% of non-cash collateral

B

50%

50%

NIL (No Interest)

C

60%

40%

On 10% deficiency of cash collateral

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