Forward contract modification allowed for exporters to enhance hedging flexibility; banks may exclude options and overseas positions from NOOPL. Exporters may cancel and rebook forward contracts involving the Rupee for hedging contracted export exposures up to an annual capped extent to provide operational flexibility. AD Category I banks may exclude their Net Options Position and positions of overseas branches from the Net Overnight Open Position Limit for Rupee involving positions, provided the bank's board fixes separate limits for these components within the overall NOOPL and communicates them to the Reserve Bank for approval.
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.
Forward contract modification allowed for exporters to enhance hedging flexibility; banks may exclude options and overseas positions from NOOPL.
Exporters may cancel and rebook forward contracts involving the Rupee for hedging contracted export exposures up to an annual capped extent to provide operational flexibility. AD Category I banks may exclude their Net Options Position and positions of overseas branches from the Net Overnight Open Position Limit for Rupee involving positions, provided the bank's board fixes separate limits for these components within the overall NOOPL and communicates them to the Reserve Bank for approval.
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