Apart from its British use, noted above, this is also, interestingly enough, a "Rinpoche's Flag," indicating that a tulku is in residence. The custom seems to come from the so-called sPen.bad frieze ("penbe") that surmounts monastic and official buildings to denote that a tulku inhabits the structure. The penbe color is typically red ochre, whereas the flag can be red ochre, maroon, burgandy, or simply red.
