Open position computation for banks excludes hedged FCNR(B) and foreign borrowing exposures under revised FEMA directions. Authorised Dealer Category-I banks must exclude positions arising from hedged transactions relating to FCNR(B) deposits, external commercial borrowings and overseas foreign currency borrowings when computing net overnight open position in Indian rupees. The change partially amends the earlier direction on NOP-INR position and must be applied consistently with the circular on open positions and the Master Direction on Risk Management and Inter-Bank Dealings. The directions are issued under FEMA, 1999 and are without prejudice to other legal permissions or approvals.
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Open position computation for banks excludes hedged FCNR(B) and foreign borrowing exposures under revised FEMA directions.
Authorised Dealer Category-I banks must exclude positions arising from hedged transactions relating to FCNR(B) deposits, external commercial borrowings and overseas foreign currency borrowings when computing net overnight open position in Indian rupees. The change partially amends the earlier direction on NOP-INR position and must be applied consistently with the circular on open positions and the Master Direction on Risk Management and Inter-Bank Dealings. The directions are issued under FEMA, 1999 and are without prejudice to other legal permissions or approvals.
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