Collateral requirement for non-resident exchange houses narrowed, with shorter projected-drawings cover and optional agreement registration. AD Category-I banks must maintain comprehensive legal documentation with non-resident exchange houses, but formal registration of Rupee/Foreign Currency Drawing Arrangement agreements is now optional. Collateral requirements have been relaxed: prescribed collateral for newer exchange houses reduced, established exchange houses remain without mandatory collateral though banks may require protection, and where auditors cannot be appointed banks may obtain cash deposits or guarantees from banks of international repute. Foreign currency collateral held with AD Category-I banks for specific arrangements has also been reduced, with periodic review of adequacy required.
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Collateral requirement for non-resident exchange houses narrowed, with shorter projected-drawings cover and optional agreement registration.
AD Category-I banks must maintain comprehensive legal documentation with non-resident exchange houses, but formal registration of Rupee/Foreign Currency Drawing Arrangement agreements is now optional. Collateral requirements have been relaxed: prescribed collateral for newer exchange houses reduced, established exchange houses remain without mandatory collateral though banks may require protection, and where auditors cannot be appointed banks may obtain cash deposits or guarantees from banks of international repute. Foreign currency collateral held with AD Category-I banks for specific arrangements has also been reduced, with periodic review of adequacy required.
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