RBI has mandated that Payment Banks must create Investment Fluctuation Reserve (IFR) out of realised gains on sale of investments, subject to availability of net profit, until the reserve reaches at least 2% of the Available for Sale (AFS) and Fair Value Through Profit and Loss (FVTPL), including Held for Trading (HFT), investment portfolio. The minimum requirement will be assessed annually based on the portfolio value as on the balance sheet date. The transfers to IFR must be made only from net profit after mandatory appropriations.