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<h1>RBI Issues Master Circular on Risk Management and Inter-Bank Dealings for Category I Banks, Effective Until July 2009.</h1> The Master Circular consolidates existing instructions on 'Risk Management and Inter-Bank Dealings' for Category I banks, focusing on Rupee Accounts of Non-Resident Banks, Inter-Bank Dealings, and Foreign Exchange Derivative Contracts. These are governed by specific FEMA notifications and their amendments. The circular is effective from July 1, 2008, and includes a sunset clause, expiring on July 1, 2009, when it will be replaced by an updated version. The circular aims to streamline and clarify the regulatory framework for authorized dealers in managing risk and inter-bank transactions.