Forward contract booking based on past performance: enhanced flexibility but excess bookings become deliverable and non cancellable. Authorised Dealer Category I banks may allow importers and exporters to book forward contracts based on a declaration of exposure and past performance (higher of three year average or prior year turnover), with separate eligible limits for imports and exports and the aggregate outstanding not to exceed the eligible limit. Forward contracts exceeding prescribed thresholds are deliverable and non cancellable. ADs must mark un documented bookings against limits, obtain declarations of bookings with other ADs, may require undertakings to produce documentary evidence, and must submit monthly utilisation reports; documentary proof removes the eligible limit constraint.
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Forward contract booking based on past performance: enhanced flexibility but excess bookings become deliverable and non cancellable.
Authorised Dealer Category I banks may allow importers and exporters to book forward contracts based on a declaration of exposure and past performance (higher of three year average or prior year turnover), with separate eligible limits for imports and exports and the aggregate outstanding not to exceed the eligible limit. Forward contracts exceeding prescribed thresholds are deliverable and non cancellable. ADs must mark un documented bookings against limits, obtain declarations of bookings with other ADs, may require undertakings to produce documentary evidence, and must submit monthly utilisation reports; documentary proof removes the eligible limit constraint.
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