Use of FCNR(B) funds permitted for resident loans for foreign exchange needs or hedged rupee working capital. FCNR(B) deposit liabilities may be used by Authorised Dealer Category I banks to make loans to resident constituents for foreign exchange requirements or for rupee working capital/capital expenditure of exporters or corporates that have a natural hedge or a risk management policy, subject to prevailing prudential and interest rate norms, credit discipline and credit monitoring guidelines.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Use of FCNR(B) funds permitted for resident loans for foreign exchange needs or hedged rupee working capital.
FCNR(B) deposit liabilities may be used by Authorised Dealer Category I banks to make loans to resident constituents for foreign exchange requirements or for rupee working capital/capital expenditure of exporters or corporates that have a natural hedge or a risk management policy, subject to prevailing prudential and interest rate norms, credit discipline and credit monitoring guidelines.
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