The swap with RBI will entail very large risk limit consumption (since it would be an off-market, in-the-money swap for banks). This will impact capital requirements substantially. Are such exposures on RBI exempted from capital adequacy requirements?
Swap Window for attracting FCNR (B) Dollar funds - As on Sep 18, 2013
Contents
Summary
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
Capital adequacy exemption: exposures to central bank from off market swaps are treated as exempt under FEMA FAQ. Exposures arising from off market, in the money swaps with the central bank consume substantial risk limits and impact capital requirements; FEMA guidance ... Summary
Capital adequacy exemption: exposures to central bank from off market swaps are treated as exempt under FEMA FAQ.
Exposures arising from off market, in the money swaps with the central bank consume substantial risk limits and impact capital requirements; FEMA guidance for the Swap Window attracting FCNR(B) dollar funds (FAQ) states such central bank exposures are exempt from capital adequacy requirements.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
Join Channel
TaxTMI 
