Collateral requirement for exchange house vostro accounts removed, leaving banks free to set collateral policies based on risk factors. Mandated collateral for Exchange Houses under the Rupee Drawing Arrangement is withdrawn and AD Category I banks may determine collateral, if any, on a risk based basis considering factors such as pre funding, the Exchange House's track record, and whether remittances are gross or net; Master Direction No.2 will be updated and other instructions remain in force, pursuant to powers under the Foreign Exchange Management Act, 1999.
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Provisions expressly mentioned in the judgment/order text.
Collateral requirement for exchange house vostro accounts removed, leaving banks free to set collateral policies based on risk factors.
Mandated collateral for Exchange Houses under the Rupee Drawing Arrangement is withdrawn and AD Category I banks may determine collateral, if any, on a risk based basis considering factors such as pre funding, the Exchange House's track record, and whether remittances are gross or net; Master Direction No.2 will be updated and other instructions remain in force, pursuant to powers under the Foreign Exchange Management Act, 1999.
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