The worked question on this page is original educational practice. It is not represented as a question from an official previous-year examination paper.
01 / UNDERSTANDING
Review the question
Prepare an original gap table and explicitly define the subtraction direction. Ask for the shortfall and then test whether a later inflow actually resolves the earlier timing problem.
02 / UNDERSTANDING
The concept in context
Contractual dates are a starting point, not a complete forecast. Customer behaviour, drawdowns, market conditions and contingent commitments can change cash needs. Gap analysis therefore belongs alongside assumptions, stress scenarios and contingency plans. A positive total across a year can conceal a serious shortage in an early bucket when payments actually have to be made.
03 / UNDERSTANDING
A worked learning case
Original educational case. In the next week, an illustrative bank expects cash inflows of ₹40 crore and outflows of ₹55 crore. The bucket gap is minus ₹15 crore. Inflows of ₹30 crore expected next month do not automatically pay this week’s obligations. The bank needs credible available funding or liquid assets, assessed under its actual liquidity-management framework.
ORIGINAL EDUCATIONAL PRACTICE
Try it before you check.
Original practice: Expected weekly inflows are ₹70 crore and outflows ₹90 crore. What is the weekly gap defined as inflows minus outflows?
Show the answer and reasoning
Minus ₹20 crore.
Subtract outflows of ₹90 crore from inflows of ₹70 crore to obtain minus ₹20 crore. The negative sign identifies a shortfall under the stated forecast. Future cash beyond this bucket may matter for wider planning, but it does not remove the timing mismatch within the week being analysed.
Two traps to watch for.
- Using annual net cash to dismiss a near-term shortfall.
- Treating all valuable assets as immediately realisable at full value.
YOUR TOPIC-SPECIFIC LEARNING MAP
Learn from the attempt
State the gap sign convention explicitly.
Place inflows and outflows in matching buckets.
Stress one important behavioural assumption.
Explain the idea, apply it to a new situation, then check what changed in your reasoning.
BANKERS TUTORIAL · SOURCE NOTES
Keep the source alongside your notes.
Official links provide subject context and authoritative reference material. This guide’s explanation, scenario and question are original Bankers Tutorial learning content.
- iibf.org.in https://iibf.org.in/diploma-banking-finance
- www.rbi.org.in https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7680
For DBF preparation, check the current official notice before relying on changing dates, rules or examination requirements.
