Foreign exchange risk hedging rules govern permissible forwards, derivatives and reporting, with strict eligibility and prudential controls. This Master Circular consolidates RBI instructions on foreign exchange risk hedging, inter-bank dealings and rupee accounts of non-resident banks, authorising specified forward contracts, swaps, options, currency futures and commodity/freight hedges subject to documentary verification, eligibility, tenor and notional matching, restrictions on structures that increase risk or yield net premium, board-approved risk policies, and extensive reporting and prudential limits for AD Category I banks.
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.
Foreign exchange risk hedging rules govern permissible forwards, derivatives and reporting, with strict eligibility and prudential controls.
This Master Circular consolidates RBI instructions on foreign exchange risk hedging, inter-bank dealings and rupee accounts of non-resident banks, authorising specified forward contracts, swaps, options, currency futures and commodity/freight hedges subject to documentary verification, eligibility, tenor and notional matching, restrictions on structures that increase risk or yield net premium, board-approved risk policies, and extensive reporting and prudential limits for AD Category I banks.
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