https://www.taxtmi.com/circulars?id=5395 AD Category I banks may issue standby letters of credit or bank guarantees to cover payment obligations for overseas commodity derivative contracts if remittance is permitted under delegated authority or specific Reserve Bank approval. Such instruments must be for margin payments on approved hedging activities, limited to previous year's margin amounts to the counterparty, for up to one year with a lien on non funded facilities; issuing banks must have Board approved policies, treat exposures as part of customer credit, apply risk weights for capital adequacy, and verify brokers' month end reports. en-us Mon, 10 Nov 2008 00:00:00 +0530 Tue, 11 Nov 2008 10:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=5395 AD Category I banks may issue standby letters of credit or bank guarantees to cover payment obligations for overseas commodity derivative contracts if remittance is permitted under delegated authority or specific Reserve Bank approval. Such instruments must be for margin payments on approved hedging activities, limited to previous year's margin amounts to the counterparty, for up to one year with a lien on non funded facilities; issuing banks must have Board approved policies, treat exposures as part of customer credit, apply risk weights for capital adequacy, and verify brokers' month end reports. Circulars FEMA Mon, 10 Nov 2008 00:00:00 +0530 https://www.taxtmi.com/circulars?id=5395