This Master Circular consolidates the existing instructions on the subject of "Risk Management and Inter-Bank Dealings" at one place. This Master Circular is issued with a sunset clause of one year. This circular will stand withdrawn on July 1, and would be replaced by an updated Master Circular on the subject. Facilities for Persons Resident in India other than Authorised Dealers Category-I.

The facilities for persons resident in India other than AD Category I banks are elaborated under paragraphs A and B. Paragraph A describes the products and operational guidelines for the respective product. In addition to the operational guidelines under A, the general instructions that are applicable across all products for residents other than AD Category I banks are detailed under Paragraph B.

AD Category I banks have to evidence the underlying documents so that the existence of underlying foreign currency exposure can be clearly established. AD Category I banks, through verification of documentary evidence, should be satisfied about the genuineness of the underlying exposure, irrespective of the transaction being a current or a capital account. Full particulars of the contracts should be marked on the original documents under proper authentication and retained for verification.

However, in cases where the submission of original documents is not possible, a copy of the original documents, duly certified by an authorized official of the user, may be obtained. In either of the cases, before offering the contract, the AD Category I banks should obtain an undertaking from the customer and also quarterly certificates from the statutory auditor for details refer para B b for General Instructions. While details of the underlying have to be recorded at the time of booking the contract, in the view of logistic issues, a maximum period of 15 days may be allowed for production of the documents.

If the documents are not submitted by the customer within 15 days, the contract may be cancelled, and the exchange gain, if any, should not be passed on to the customer. In the event of non-submission of the documents by the customer within 15 days on more than three occasions in a financial year, booking of permissible derivative contracts in future may be allowed only against production of the underlying documents, at the time of booking the contract.

Forward foreign exchange contracts covering such transactions will be settled in cash on maturity. The currency of hedge and tenor, subject to the above restrictions, are left to the customer. Where the currency of hedge is different from the currency of the underlying exposure, the risk management policy of the corporate, approved by the Board of the Directors, should permit such type of hedging.

However, there should be periodical review of the estimates. They are, however, eligible for rollover, on maturity. The AD Category I bank may also verify the amount and tenor of the underlying substituted. Market-makers - AD Category I banks as approved for this purpose by the Reserve Bank. To hedge the contingent foreign exchange exposure arising out of submission of a tender bid in foreign exchange. AD Category I banks can only offer plain vanilla European options 1.

All guidelines applicable for cross currency forward contracts are applicable to cross currency option contracts also. Cross currency options should be written by AD Category I banks on a fully covered back-to-back basis. The cover transaction may be undertaken with a bank outside India, an Off-shore Banking Unit situated in a Special Economic Zone or an internationally recognized option exchange or another AD Category I bank in India.

AD Category I banks desirous of writing options, should obtain a one-time approval from the Principal Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Forex Markets Division, Central Office, 11th Floor, Mumbai, , before undertaking the business.

Market-makers - AD Category I banks, as approved for this purpose by the Reserve Bank. To hedge foreign currency exposures in accordance with Schedule I of Notification No.

AD Category I banks having a minimum CRAR of 9 per cent, can offer foreign currency— INR options on a back-to-back basis. All guidelines applicable for foreign currency-INR foreign exchange forward contracts are applicable to foreign currency-INR option contracts also.

The memorandum put up to the Board should clearly mention the downside risks, among other matters. Option contracts may be settled on maturity either by delivery on spot basis or by net cash settlement in Rupees on spot basis as specified in the contract. In case of unwinding of a transaction prior to the maturity, the contract may be cash settled based on market value of an identical off-setting option.

The residual maturity life of each outstanding option contract can be taken as the basis for the purpose of grouping under various maturity buckets. AD banks running an option book are permitted to initiate plain vanilla cross currency option positions to cover risks arising out of market making in foreign currency-INR options.

Banks should put in place necessary systems for marking to market the portfolio on a daily basis. FEDAI will publish daily a matrix of polled implied volatility estimates, which market participants can use for marking to market their portfolio. The accounting framework for option contracts will be as per FEDAI circular No. Residents having a foreign currency liability and undertaking a foreign currency-INR swap to move from a foreign currency liability to a Rupee liability.

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Incorporated resident entities having a rupee liability and undertaking an INR — foreign currency swap to move from rupee liability to a foreign currency liability, subject to certain minimum prudential requirements, such as risk management systems and natural hedges or economic exposures. In the absence of natural hedges or economic exposures, the INR-foreign currency swap to move from rupee liability to a foreign currency liability may be restricted to listed companies or unlisted companies with a minimum net worth of Rs crore.

Further, the AD Category I bank is required to examine the suitability and appropriateness of the swap and be satisfied about the financial soundness of the corporate. No swap transactions involving upfront payment of Rupees or its equivalent in any form shall be undertaken.

The swap transactions, once cancelled, shall not be rebooked or re-entered, by whichever mechanism or by whatever name called. AD Category I banks should not offer leveraged swap structures.

The notional principal amount of the swap should not exceed the outstanding amount of the underlying loan. Disclosures are made in the financial statements as prescribed in ICAI press release dated 2nd December ; and.

To hedge exchange rate risk arising out of trade transactions, External Commercial Borrowings ECBs and foreign currency loans availed of domestically against FCNR B deposits. Users can enter into option strategies of simultaneous buy and sell of plain vanilla European options, provided there is no net receipt of premium.

Leveraged structures, digital options, barrier options, range accruals and any other exotic products are not permitted. The portion of the structure with the largest notional, computed over the tenor of the structure, should be reckoned for the purpose of underlying. AD Category I banks may, stipulate additional safeguards, such as, continuous profitability, higher net worth, turnover, etc depending on the scale of forex operations and risk profile of the users.

The maturity of the hedge should not exceed the maturity of the underlying transaction and subject to the same the users may choose the tenor of the hedge. In case of trade transactions being the underlying, the tenor of the structure shall not exceed two years. Products — Interest rate swap, Cross currency swap, Coupon swap, Cross currency option, Interest rate cap or collar purchases , Forward rate agreement FRA. Persons resident in India who have borrowed foreign exchange in accordance with the provisions of Foreign Exchange Management Borrowing and Lending in Foreign Exchange Regulations, For hedging interest rate risk and currency risk on loan exposure and unwinding from such hedges.

Final approval has been accorded or Loan Registration Number allotted by the Reserve Bank for borrowing in foreign currency. The notional principal amount of the product should not exceed the outstanding amount of the foreign currency loan. Probable exposure based on past performance can be hedged only in respect of trades in merchandise goods as well as services. Forward foreign exchange contracts, cross currency options not involving the rupee , foreign currency-INR options and cost reduction structures [as mentioned in section B para I 1 v ].

The additional limits, if sanctioned, shall be on a deliverable basis. These contracts once cancelled, are not eligible to be rebooked. Rollovers are also not permitted.

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An undertaking may be taken from the customer that supporting documentary evidence will be produced before the maturity of all the contracts booked.

Importers and exporters should furnish a quarterly declaration to the AD Category I banks, duly certified by the Statutory Auditor, regarding amounts booked with other AD Category I banks under this facility, as per Annex VI. For an exporter customer to be eligible for this facility, the aggregate of overdue bills shall not exceed 10 per cent of the turnover. Aggregate outstanding contracts in excess of 50 per cent of the eligible limit may be permitted by the AD Category I bank on being satisfied about the genuine requirements of their customers after examination of the following documents:.

A certificate from the Statutory Auditor of the customer that all guidelines have been adhered to while utilizing this facility.

The drawing up of the audited figures previous year may require some time at the commencement of the financial year. However, if the statements are not submitted within three months from the last date of the financial year, the facility should not be provided until submission of the audited figures.

In addition to the customer declarations, AD Category I banks should also assess the past transactions with the customers, turnover, etc. Users — Small and Medium Enterprises SMEs 2.

Such contracts may be booked through AD Category I banks with whom the SMEs have credit facilities and the total forward contracts booked should be in alignment with the credit facilities availed by them for their foreign exchange requirements or their working capital requirements or capital expenditure.

The SMEs availing this facility should furnish a declaration to the AD Category I bank regarding the amounts of forward contracts already booked, if any, with other AD Category I banks under this facility. To hedge their foreign exchange exposures arising out of actual or anticipated remittances, both inward and outward, can book forward contracts, without production of underlying documents, up to a limit of USD ,, based on self declaration.

The contracts booked under this facility would normally be on a deliverable basis. However, in case of mismatches in cash flows or other exigencies, the contracts booked under this facility may be allowed to be cancelled and re-booked. The notional value of the outstanding contracts should not exceed USD , at any time.

Such contracts may be booked through AD Category I banks with whom the resident individual has banking relationship, on the basis of an application-cum-declaration in the format given in Annex XIV. General Instructions for OTC forex derivative contracts entered by Residents in India.

While the guidelines indicated above govern specific foreign exchange derivatives, certain general principles and safeguards for prudential considerations that are applicable across the OTC foreign exchange derivatives, are detailed below.

In addition to the guidelines under the specific foreign exchange derivative product, the general instructions should be followed scrupulously by the users residents in India other than AD Category I banks and the market makers AD Category I banks.

The corporates should provide an annual certificate to the AD Category I bank certifying that the derivative transactions are authorized and that the Board or the equivalent forum in case of partnership or proprietary firms is aware of the same. This undertaking can also be obtained as a part of the deal confirmation. However, in case of INR- foreign currency swaps, at the inception, the user can enter into one time plain vanilla cross currency option not involving Rupee to cap the currency risk.

Similarly, the tenor of the derivative contracts should not exceed the tenor of the underlying exposure. The notional amount for the entire transaction over its complete tenor must be calculated and the underlying exposure being hedged must be commensurate with the notional amount of the derivative contract.

This is also applicable to the products offered even on back to back basis. The pricing of all forex derivative products should be locally demonstrable at all times. As part of further developing the derivatives market in India and adding to the existing menu of foreign exchange hedging tools available to the residents, currency futures contracts have been permitted to be traded in recognized stock exchanges or new exchanges, recognized by the Securities and Exchange Board of India SEBI in the country.

The currency futures market would function subject to the directions, guidelines, instructions issued by the Reserve Bank and the SEBI, from time to time. Persons resident in India are permitted to participate in the currency futures market in India subject to directions contained in the Currency Futures Reserve Bank Directions, [ Notification No. The size of each contract shall be USD for USD-INR contracts, Euro for Euro-INR contracts, GBP for GBP-INR contracts and JPY , for JPY-INR contracts.

Membership for both trading and clearing, in the currency futures market shall be subject to the guidelines issued by the SEBI. The position limits for various classes of participants in the currency futures market shall be subject to the guidelines issued by the SEBI. The AD Category - I banks, shall operate within prudential limits, such as Net Open Position NOP and Aggregate Gap AG limits.

The surveillance and disclosures of transactions in the currency futures market shall be carried out in accordance with the guidelines issued by the SEBI.

In order to expand the existing menu of exchange traded hedging tools available to the residents and non residents, plain vanilla currency options contracts have been permitted to be traded in recognized stock exchanges or new exchanges, recognized by the Securities and Exchange Board of India SEBI in the country.

Membership for both trading and clearing, in the exchange traded currency options market shall be subject to the guidelines issued by the SEBI. The AD Category - I banks, which fulfil the prudential requirements, should lay down detailed guidelines with the approval of their Boards for trading and clearing of the exchange traded currency options contracts and management of risks. The surveillance and disclosures of transactions, in the exchange traded currency options market, shall be carried out in accordance with the guidelines issued by the SEBI.

Terms and conditions for residents participating in the Exchange Traded Currency Derivatives ETCD. Domestic participants shall be allowed to take a long bought as well as short sold position upto USD 10 million per exchange without having to establish the existence of any underlying exposure.

For the purpose of convenience, exchanges may prescribe a fixed limit for the contracts in currencies other than USD such that the limit is within the equivalent of USD 10 million. Domestic participants who want to take a position exceeding USD 10 million in the ETCD market will have to establish the existence of an underlying exposure. The procedure for the same shall be as under:. The participants shall furnish, to the trading member of the exchange, a certificate s from their statutory auditors regarding the limit s mentioned above along with an undertaking signed by the Chief Financial Officer CFO to the effect that at all time, the sum total of the outstanding OTC derivative contracts and the outstanding ETCD contracts shall be corresponding to the actual exports or imports contracted, as the case may be.

Based on the above certificate, a trading member can book ETCD contracts upto fifty per cent of the eligible limit [as at paragraph i above] on behalf of the concerned customer. If a participant wishes to take position beyond the fifty per cent of the eligible limit in the ETCD, it has to produce a certificate from the statutory auditors certifying that the sum total of the outstanding OTC derivative contracts and outstanding ETCD contracts has generally been in correspondence with the eligible limits.

Based on such a certificate, the trading member can book ETCD contracts beyond fifty per cent of the limit and up to limit mentioned in paragraph i above. All participants in the ETCD market, except those covered by paragraph iv above, will be required to submit to the concerned trading member of the exchange a half-yearly certificate from their statutory auditors as on March 31st and September 30th, within fifteen days from the said dates, to the effect that during the preceding six months, the derivative contracts entered into by the participant in the OTC and the ETCD markets put together did not exceed the actual exposure.

It may be noted that the onus of complying with the provisions of this circular rests with the participant and in case of any contravention the participant shall render itself liable to any action that may be warranted as per the provisions of Foreign Exchange Management Act, and those of the Regulations, Directions, etc.

Standard exchange traded futures and options purchases only in international commodity exchanges. If risk profile warrants —may use OTC contracts overseas. To hedge the price risk on crude oil imports on the basis of past performance. If risk profile warrants — may use OTC contracts overseas.

An undertaking may be obtained from the companies to this effect. To hedge the price risk on aluminium, copper, lead, nickel and zinc based on their underlying economic exposures. To hedge economic exposures in respect of ATF based on domestic purchases.

To hedge commodity price risk on domestic purchases of crude oil and domestic sales of petroleum products, which are linked to international prices. Residents in India, who are exposed to systemic international price risk in commodities.

The details of the application are given in Annex XII. The detailed guidelines in respect of Delegated Route and Approval Route are given in the Annex XI and XII respectively. Domestic oil refining companies and shipping companies exposed to freight risk, are permitted to hedge their freight risk by the AD Category I banks authorized by the Reserve Bank.

Other companies exposed to freight risk can seek prior permission from the Reserve Bank through their AD Category I bank. It may be noted that the role of Authorized Dealer banks here is primarily to provide facilities for remitting foreign currency amounts towards margin requirements from time to time, subject to verification of the underlying exposure.

This facility must not be used in conjunction with any other derivative product. The facility is divided into following categories:. AD Category I banks, specifically authorized by the Reserve Bank i. The freight hedging will be on the basis of underlying contracts i.

Additionally, domestic oil refining companies may hedge their freight risk on anticipated imports of crude oil on the basis of their past performance up to 50 per cent of the volume of actual imports of crude oil during the previous year or 50 per cent of the average volume of imports during the previous three financial years, whichever is higher. Contracts booked under the past performance facility will have to be regularized by production of underlying documents during the currency of the hedge.

An undertaking may be obtained from the company to this effect. The quantum of hedge will be determined by the number and capacity of these ships. The same may be certified by the statutory auditor and submitted to the AD Category I bank.

Contracts booked will have to be regularized by production of underlying documents i. AD Category I banks may also ensure that the freight derivatives being entered into by the shipping companies are reflective of the underlying business of the shipping companies. Companies other than domestic oil-refining companies and shipping companies who are exposed to freight risk.

The exchanges on which the products are purchased must be a regulated entity in the host country. Users — Foreign Institutional Investors FII , Investors having Foreign Direct Investments FDI , Non Resident Indians NRIs , Non Resident exporters and importers, Non Residents lenders having ECBs designated in INR and Qualified Foreign Investors QFIs. The purpose, products and operational guidelines of each of the users is detailed below:.

Forward foreign exchange contracts with rupee as one of the currencies and foreign currency-INR options. Foreign Currency — INR swaps for IPO related flows. The eligibility for cover may be determined on the basis of a valuation certificate provided by the designated AD category bank along with a declaration by the FII to the effect that its global outstanding hedges plus the derivatives contracts cancelled across all AD category banks is within the market value of its investments.

The FII should also provide a quarterly declaration to the custodian bank that the total amount of derivatives contract booked across AD Category banks are within the market value of its investments.

In this context, it is clarified that in case an FII intends to hedge the exposure of one of its sub-account holders, cf paragraph 4 of schedule 2 to Notification No. Further, the AD Category I banks shall have to verify the mandate as well as the eligibility of the contract vis-a-vis the market value of the securities held in the concerned sub-account. The forward contracts booked may, however, be rolled over on or before maturity.

FIIs can undertake foreign currency- rupee swaps only for hedging the flows relating to the IPO under the ASBA mechanism. The contracts, once cancelled, cannot be rebooked. Rollovers under this scheme will also not be permitted.

The funds thus remitted can be transferred to the designated AD Category -I custodian bank through the banking channel. Note should, however, be taken that KYC in respect of the remitter, wherever required, is a joint responsibility of the bank that has received the remittance as well as the bank that ultimately receives the proceeds of the remittance.

While the first bank will be privy to the details of the remitter and the purpose of the remittance, the second bank, will have access to complete information from the recipient's perspective. Besides, the remittance receiving bank is required to issue FIRC to the bank receiving the proceeds to establish the fact the funds had been remitted in foreign currency.

Terms and conditions for Foreign Portfolio Investors participating in the Exchange Traded Currency Derivatives ETCD. FPIs will be allowed access to the currency futures or exchange traded currency options for the purpose of hedging the currency risk arising out of the market value of their exposure to Indian debt and equity securities. FPIs can take position — both long bought as well as short sold — in foreign currency up to USD 10 million or equivalent per exchange without having to establish existence of any underlying exposure.

The limit will be both day-end as well as intra-day. An FPI cannot take a short position beyond USD 10 million at any time and to take a long position beyond USD 10 million in any exchange, it will be required to have an underlying exposure. The onus of ensuring the existence of an underlying exposure shall rest with the FPI concerned. The exchange will, however, be free to impose additional restrictions as prescribed by the Securities and Exchange Board of India SEBI for the purpose of risk management and fair trading.

The custodian banks will aggregate the position of each FPI on the exchanges as well as the OTC contracts booked with them i. If the total value of the contracts exceeds the market value of the holdings on any day, the concerned FPI shall be liable to such penal action as may be laid down by the SEBI in this regard and action as may be taken by Reserve Bank of India under the Foreign Exchange Management Act FEMA , To hedge the exchange rate risk on the market value of investment made under the portfolio scheme in accordance with provisions of FERA, or under notifications issued there under or in accordance with provisions of FEMA, To hedge the exchange rate risk on the amount of dividend due on shares held in Indian companies.

Forward foreign exchange contracts with rupee as one of the currencies, and foreign currency-INR options. Additionally, for balances in FCNR B accounts — Cross currency not involving the rupee forward contracts to convert the balances in one foreign currency to other foreign currencies in which FCNR B deposits are permitted to be maintained.

To hedge exchange rate risk on the market value of investments made in India since January 1, , subject to verification of the exposure in India. The contracts may, however, be rolled over. Contracts to hedge exchange rate risk arising out of proposed investment in Indian companies may be allowed to be booked only after ensuring that the overseas entities have completed all the necessary formalities and obtained necessary approvals wherever applicable for the investment.

The tenor of the contracts should not exceed six months at a time beyond which permission of the Reserve Bank would be required to continue with the contract. To hedge the currency risk arising out of genuine trade transactions involving exports from and imports to India, invoiced in Indian Rupees, with AD Category I banks in India.

The overseas bank in turn approaches its correspondent in India i. The following undertakings also need to be taken from the customer:. If the underlying exposure is cancelled, the customer will cancel the hedge contract immediately. A certification on the end client KYC may also be taken as a one time document from the overseas bank by the AD bank in India.

The AD bank in India based on documents received from the overseas correspondent should satisfy itself about the existence of the underlying trade transaction and offer a forward price no two-way quotes should be given to the overseas bank who, in turn, will offer the same to its customer. The contracts may, however, be rolled over on or before maturity subject to maturity of the underlying exposure.

On cancellation of the contracts, gains may be passed on to the customer subject to the customer providing a declaration that he is not going to rebook the contract or that the contract has been cancelled on account of cancellation of the underlying exposure.

In case the underlying trade transaction is extended, rollover can be permitted once based on the extension of the underlying trade transaction for which suitable documentation is to be provided by the overseas bank and the same procedure followed as in case of the original contract. The following undertakings also need to be taken from the customer.

AD banks should evolve appropriate arrangements to mitigate credit risk. To hedge the currency risk arising out of ECBs designated in INR with AD Category- I banks in India. Forward foreign exchange contracts with rupee as one of the currencies, foreign currency-INR options and foreign currency-INR swaps.

The following undertakings also need to be taken from the customer —. To hedge Initial Public Offers IPO related transient capital flows under the Application Supported by Blocked Amount ASBA mechanism. QFIs can undertake foreign currency- rupee swaps only for hedging the flows relating to the IPO under the ASBA mechanism.

Purpose - Hedging of interest rate and currency risks of foreign exchange asset-liability portfolio. AD banks may also purchase call or put options to hedge their cross currency proprietary trading positions. If a hedge becomes naked, in part or full, owing to the contraction of the value of portfolio, it may be allowed to continue till the original maturity and should be marked to market at regular intervals. Banks, which are allowed to enter into forward gold contracts in India in terms of the guidelines issued by the Department of Banking Operations and Development including the positions arising out of inter-bank gold deals.

Products - Exchange-traded and over-the-counter hedging products available overseas. While using products involving options, it may be ensured that there is no net receipt of premium, either direct or implied. Authorised banks are permitted to enter into forward contracts with their constituents exporters of gold products, jewellery manufacturers, trading houses, etc. The tenor of such contracts should not exceed six months. The capital funds should be available in India to meet local regulatory and CRAR requirements and, hence, these should not be parked in nostro accounts.

Foreign currency funds accruing out of hedging should not be parked in Nostro accounts but should remain swapped with banks in India at all times. The forward contracts should be for tenors of one or more years and may be rolled over on maturity. Rebooking of cancelled hedges will require prior approval of the Reserve Bank. Foreign banks are permitted to hedge their Tier II capital in the form of Head Office borrowing as subordinated debt, by keeping it swapped into rupees at all times in terms of DBOD circular No.

The AD Category - I banks which fulfill the prudential requirements should lay down detailed guidelines with the approval of their Boards for trading and clearing of currency futures contracts and management of risks.

AD Category - I banks which do not meet the above minimum prudential requirements and AD Category - I banks which are Urban Co-operative banks or State Co-operative banks can participate in the currency futures market only as clients, subject to approval and directions from the respective regulatory Departments of the Reserve Bank. The exposure of the banks, on their own account, in the currency futures market shall form part of their NOP and AG limits.

Keeping in view the volatility in the foreign exchange market, Reserve Bank may however stipulate a separate sub-limit of the NOPL as a percentage thereof exclusively for the OTC market as and when required. The option position of the banks, on their own account, in the exchange traded currency options shall form part of their NOP and AG limits. Opening of Rupee accounts in the names of branches of Pakistani banks operating outside Pakistan requires specific approval of the Reserve Bank.

Any such instances should be notified to the Reserve Bank. Forward purchase or sale of foreign currencies against Rupees for funding is prohibited. Offer of two-way quotes in Rupees to non-resident banks is also prohibited.

Balances held in Rupee accounts of non-resident banks may be freely converted into foreign currency. All such transactions should be recorded in Form A2 and the corresponding debit to the account should be in form A3 under the relevant Returns. Requests for cancellation or refund of inward remittances may be complied with without reference to Reserve Bank after satisfying themselves that the refunds are not being made in cover of transactions of compensatory nature.

This limit applies to the amount outstanding against all overseas branches and correspondents in the books of all the branches of the authorised AD Category I bank in India. This facility should not be used to postpone funding of accounts. If overdrafts in excess of the above limit are not adjusted within five days a report should be submitted to the Reserve Bank of India, Foreign Exchange Department, Forex Markets Division, Central Office, Mumbai within 15 days from the close of the month, stating the reasons thereof.

Such a report is not necessary if arrangements exist for value dating. Opening of Rupee accounts in the names of Exchange Houses for facilitating private remittances into India requires approval of the Reserve Bank.

Remittances through Exchange Houses for financing trade transactions are permitted upto Rs. The Board of Directors of AD Category I banks should frame an appropriate policy and fix suitable limits for various Treasury functions.

Subject to compliance with the provisions of paragraphs 1 and 2, AD Category I banks may freely undertake foreign exchange transactions as under:. Form A2 need not be completed for sales in the inter-bank market, but all such transactions shall be reported to Reserve Bank in R Returns. AD Category I banks may maintain balances in foreign currencies up to the levels approved by the Board. For the purpose of investments in debt instruments other than the money market instruments of any foreign state, bank's Board may lay down country ratings and country - wise limits separately wherever necessary.

For the purpose of this clause, 'money market instrument' would include any debt instrument whose life to maturity does not exceed one year as on the date of purchase. If drawals in excess of the above limit are not adjusted within five days, a report, as per the format in Annex-VIII, should be submitted to the Principal Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Forex Markets Division, Central Office, Mumbai , within 15 days from the close of the month in which the limit was exceeded.

Any fresh borrowing above this limit shall be made only with the prior approval of the Reserve Bank. Applications for fresh ECBs should be made as per the current ECB Policy.

Subordinated debt placed by head offices of foreign banks with their branches in India as Tier II capital.

ADs should submit this report as per the revised format online only from quarter ended September through the Extensible Business Reporting Language XBRL system which may be accessed at https: Please note that details of exposures of all corporate clients who meet the prescribed criteria have to be included in the report.

The AD banks should submit this report based on bank's books and not based on corporate returns. The report should be received by the 10th of the following month. The report may also be forwarded by e-mail so as to reach the Department by the 10th of the following month. The list should be submitted before 15th January of the following year. The reports are to be sent to the Principal Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Central Office, Forex Markets Division, 11th Floor, Mumbai - unless otherwise specified.

Guidelines for Foreign Exchange Exposure Limits of Authorised Dealers Category — I. Limit for positions involving Rupee as one of the currencies NOP-INR for exchange rate management. For banks incorporated in India, the exposure limits fixed by the Board should be the aggregate for all branches including their overseas branches and Off-shore Banking Units.

For foreign banks, the limits will cover only their branches in India. Net Overnight Open Position Limit NOOPL for calculation of capital charge on forex risk. NOOPL may be fixed by the boards of the respective banks and communicated to the Reserve Bank immediately. However, such limits should not exceed 25 percent of the total capital Tier I and Tier II capital of the bank. The open position must first be measured separately for each foreign currency. The open position in a currency is the sum of a the net spot position, b the net forward position and c the net options position.

The net spot position is the difference between foreign currency assets and the liabilities in the balance sheet. This represents the net of all amounts to be received less all amounts to be paid in the future as a result of foreign exchange transactions which have been concluded. These transactions, which are recorded as off-balance sheet items in the bank's books, would include:. Guarantees and similar commitments denominated in foreign currencies which are certain to be called;.

The options position is the "delta-equivalent" spot currency position as reflected in the authorized dealer's options risk management system, and includes any delta hedges in place which have not already been included under 1 a or 1 b i and ii above. This involves measurement of risks inherent in a bank's mix of long and short position in different currencies.

It has been decided to adopt the "shorthand method" which is accepted internationally for arriving at the overall net open position. Banks may, therefore, calculate the overall net open position as follows:.

All derivative transactions including forward exchange contracts should be reported on the basis of Present Value PV adjustment. Overall net foreign exchange position is the higher of iv or v. Authorised Dealer banks should report all derivative transactions including forward exchange contracts on the basis of PV adjustment for the purpose of calculation of the net open position.

Authorised Dealer banks may select their own yield curve for the purpose of PV adjustments. For banks with overseas presence, the offshore exposures should be calculated on a standalone basis as per the above method and should not be netted with onshore exposures.

Accumulated surplus of foreign branches need not be reckoned for calculation of open position. An illustrative example is as follows:. If a bank has, let us say three foreign branches and the three branches have open position as below-. Authorized Dealers should also have a system in place to demonstrate, whenever required, the various components of the NOOP as prescribed in the guidelines for verification by Reserve Bank. Transactions undertaken by Authorized Dealers till the end of business day may be computed for calculation of Foreign Exchange Exposure Limits.

The transactions undertaken after the end of business day may be taken into the positions for the next day. NOP-INR may be prescribed to Authorised Dealers at the discretion of the Reserve Bank of India depending on the market conditions. However, such breaches are to be monitored by the banks with proper audit trail.

AGL may be fixed by the boards of the respective banks and communicated to the Reserve Bank immediately. However, such limits should not exceed 6 times the total capital Tier I and Tier II capital of the bank. The guidelines and formats for preparation of the FTD and GPB reports are given below. AD Category-I banks may ensure that the reports are properly compiled on the basis of these guidelines: The data for a particular date has to reach us by the close of business of the following working day.

SWAP - Only foreign exchange swaps between authorised dealers category-I should be reported under swap transactions. Long term swaps both cross currency and foreign currency-Rupee swaps should not be included in this report.

Cancellation of forwards - The amount required to be reported under cancellation of forward contracts against purchases from merchants should be the aggregate of cancelled forward merchant sale contracts by authorised dealers category-I adding to the supply in the market. On the sale side of cancelled forward contracts, aggregate of the cancelled forward purchase contracts should be indicated adding to the demand in the market.

Transactions with RBI should be included in inter-bank transactions. Transactions with financial institutions other than banks authorised to deal in foreign exchange should be included under merchant transactions. Foreign Currency Balances - Cash balances and investments in all foreign currencies should be converted into US dollars and reported under this head.

Net open exchange position- This should indicate the overall overnight net open exchange position of the authorised dealer category-I in Rs. The net overnight open position should be calculated on the basis of the instructions given in Annex I. This statement should be addressed to The Director, Division of International Finance, Department of Economic Analysis and Policy, Reserve Bank of India, Central Office Building, 8th Floor, Mumbai- Fax- , We refer to the facility of booking of Forward or Option Contracts involving Foreign Exchange, based on the past performance facility with Authorised Dealer Category I Banks AD Category I Banks , more specifically in relation to the undertaking submitted by us to you, dated [ ] in this regard "Undertaking".

In accordance with the said Undertaking, we hereby furnish a declaration regarding the amounts of the transactions booked by us with all AD Category I banks. We are availing the past performance limit with the following AD Category I banks: The total net open options position can be arrived using the methodology prescribed in A. DIR Series Circular No. Similarly, Change in delta for a 0.

This report should be prepared for a range of paise around current spot level. Cumulative positions to be given.

Reserve Bank of India - Master Directions

All amounts in USD million. When the bank owns an option, the amount should be shown as positive. When the bank has sold an option, the amount should be shown as negative. All reports may be sent via e-mail by market-makers. Reports may be prepared as of every Friday and sent by the following Monday.

Borrowings in terms of PartC para 5 a of Master Circular on Risk Mgmt. Borrowings in excess of the above limit for replenishment. RBI reference rate and New York closing rates on the date of report may be used for conversion purpose.

Facility since withdrawn vide para 4 of AP DIR Series Circular No. Reserve Bank retains the right to withdraw the permission granted to any bank, if considered necessary. Before permitting corporates to undertake hedge transactions, authorized dealer would require them to submit a Board resolution indicating i that the Board understands the risks involved in these transactions, ii nature of hedge transactions that the corporate would undertake during the ensuing year, and iii the company would undertake hedge transaction only where it is exposed to price risk.

The name and address of the regulatory authority in the country concerned may also be given,. Authorised Dealers may refuse to undertake any hedge transaction if it has a doubt about the bonafides of the transaction or the corporate is not exposed to price risk.

The conditions subject to which ADs would grant permission to hedge and the guidelines for monitoring of the transactions are given below. Necessary advice may be given to the customers before they start their hedging activity. Applications from customers to undertake hedge transactions not covered under the delegated authority may continue to be forwarded to the Reserve Bank by the Authorised Dealers Category I, for approval.

The focus of hedge transactions shall be on risk containment. Only off-set hedge is permitted. All standard exchange traded futures and options purchases only are permitted. Un-reconciled items should be followed up with the Broker and reconciliation completed within three months.

The responsibility of monitoring transactions in this regard will be that of the Authorised Dealer Category I. The hedging has to be undertaken only through AD Category I banks, , subject to conditions and guidelines as also given in a and b of this Annex. While extending the above hedging facilities, AD Category I banks should ensure that the domestic crude oil refining companies hedging their exposures should comply with the following:.

A brief description of the hedging strategy proposed, namely: Name of the AD Category — I bank: Signature of the Authorised official: The issuing bank shall have a Board approved policy on the nature and extent of exposures that the bank can take for such transactions and should be part of the credit exposure of the customers.

The exposure should also be assigned risk weights, for capital adequacy purposes as per the extant provisions. The bank shall ensure that the guidelines for overseas commodity hedging have been duly complied with. Conditions for allowing users to enter into a combination of OTC option strategies involving a simultaneous purchase and sale of options for overseas Commodity hedging. Writing of options by the users, on a standalone basis is not permitted.

Users can however, write options as part of cost reduction structures, provided, there is no net receipt of premium. Leveraged structures, Digital options, Barrier options and any other exotic products are not permitted. The portion of the structure with the largest notional should be reckoned for the purpose of underlying. AD Category I banks may, stipulate additional safeguards, such as continuous profitability, etc.

P DIR Series Circular No. DIR Series Circular No Skip to main content. Search the Website Search. Home About Us Notifications Press Releases Speeches Publications Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Lectures Statistics Data Releases Database on Indian Economy. Home Notifications Master Circulars. Contracted Exposure Probable Exposure Special Dispensation 1 Contracted Exposures AD Category I banks have to evidence the underlying documents so that the existence of underlying foreign currency exposure can be clearly established.

The products available under this facility are as follows: Contracts covering overseas direct investment ODI can be cancelled or rolled over on due dates. Rollovers on due date shall be permitted up to the extent of the market value as on that date. Operational Guidelines, Terms and Conditions General principles to be observed for forward foreign exchange contracts.

Operational Guidelines, Terms and Conditions AD Category I banks can only offer plain vanilla European options 1. Customers can buy call or put options.

Users — Persons resident in India Purpose To hedge foreign currency exposures in accordance with Schedule I of Notification No. Operational Guidelines, Terms and Conditions AD Category I banks having a minimum CRAR of 9 per cent, can offer foreign currency— INR options on a back-to-back basis. For the present, AD category I banks can offer only plain vanilla European options. Net worth not less than Rs crore CRAR of 10 per cent Net NPAs not exceeding 3 per cent of the net advances Continuous profitability for at least three years The Reserve Bank will consider the application and accord a one-time approval at its discretion.

AD Category I banks are expected to manage the option portfolio within the Reserve Bank approved risk management limits. Users — Residents having a foreign currency liability and undertaking a foreign currency-INR swap to move from a foreign currency liability to a Rupee liability.

Operational Guidelines, Terms and Conditions No swap transactions involving upfront payment of Rupees or its equivalent in any form shall be undertaken. The maturity of the swap should not exceed the remaining maturity of the underlying loan.

Operational Guidelines, Terms and Conditions Writing of options by the users, on a standalone basis, is not permitted. The delta of the options should be explicitly indicated in the term sheet. The MTM position should be intimated to the users on a periodical basis.

Products — Interest rate swap, Cross currency swap, Coupon swap, Cross currency option, Interest rate cap or collar purchases , Forward rate agreement FRA Participants Market-makers — AD Category I banks in India Branch outside India of an Indian bank authorized to deal in foreign exchange in India Offshore banking unit in a SEZ in India. Users — Persons resident in India who have borrowed foreign exchange in accordance with the provisions of Foreign Exchange Management Borrowing and Lending in Foreign Exchange Regulations, Purpose For hedging interest rate risk and currency risk on loan exposure and unwinding from such hedges.

Operational Guidelines, Terms and Conditions The products, as detailed above should not involve the rupee under any circumstances. The maturity of the product should not exceed the unexpired maturity of the underlying loan. The contracts may be cancelled and rebooked freely. Products Forward foreign exchange contracts, cross currency options not involving the rupee , foreign currency-INR options and cost reduction structures [as mentioned in section B para I 1 v ]. Operational Guidelines, Terms and Conditions a Corporates having a minimum net worth of Rs crores and an annual export and import turnover exceeding Rs crores and satisfying all other conditions as stipulated in section B para I 1 v may be allowed to use cost reduction structures.

Fifty percent of the eligible limit i. Importers, who have already booked contracts up to previous limit of 25 per cent in the current financial year, shall be eligible for difference arising out of the enhanced limit. Aggregate outstanding contracts in excess of 50 per cent of the eligible limit may be permitted by the AD Category I bank on being satisfied about the genuine requirements of their customers after examination of the following documents: Resident Individuals, Firms and Companies Purpose To hedge their foreign exchange exposures arising out of actual or anticipated remittances, both inward and outward, can book forward contracts, without production of underlying documents, up to a limit of USD ,, based on self declaration.

Product Forward foreign exchange contracts Operational Guidelines, Terms and Conditions The contracts booked under this facility would normally be on a deliverable basis. The contracts may be permitted to be booked up to tenors of one year only. General Instructions for OTC forex derivative contracts entered by Residents in India While the guidelines indicated above govern specific foreign exchange derivatives, certain general principles and safeguards for prudential considerations that are applicable across the OTC foreign exchange derivatives, are detailed below.

An annual certificate from the statutory auditors to the effect that the contracts outstanding with all AD category I banks at any time during the year did not exceed the value of the underlying exposures at that time. It is reiterated, however, that that the AD bank, while entering into any derivative transaction with a client, shall have to obtain an undertaking from the client to the effect that the contracted exposure against which the derivative transaction is being booked has not been used for any derivative transaction with any other AD bank.

Currency futures are subject to following conditions: Permission i Currency futures are permitted in US Dollar USD - Indian Rupee INR , Euro EUR -INR, Japanese Yen JPY -INR and Pound Sterling GBP -INR. Features of currency futures Standardized currency futures shall have the following features: USD-INR, EUR-INR, GBP-INR and JPY-INR contracts are allowed to be traded. The contracts shall be quoted and settled in Indian Rupees.

The maturity of the contracts shall not exceed 12 months. Membership i The membership of the currency futures market of a recognised stock exchange shall be separate from the membership of the equity derivative segment or the cash segment. Surveillance and disclosures The surveillance and disclosures of transactions in the currency futures market shall be carried out in accordance with the guidelines issued by the SEBI.

Exchange traded Currency options are subject to following conditions: Permission i Exchange traded Currency option contracts are permitted in US Dollar USD - Indian Rupee INR. Features of exchange traded currency options Standardized exchange traded currency options shall have the following features: The underlying for the currency option shall be US Dollar — Indian Rupee USD-INR spot rate.

The options shall be premium styled European call and put options. The size of each contract shall be USD The premium shall be quoted in Rupee terms.

The outstanding position shall be in USD. The maturity of the contracts shall not exceed twelve months. The contracts shall be settled in cash in Indian Rupees. Membership i Members registered with the SEBI for trading in currency futures market shall be eligible to trade in the exchange traded currency options market of a recognised stock exchange.

Minimum net worth of Rs. Minimum CRAR of 10 per cent. Net NPA should not exceed 3 per cent. Made net profit for last 3 years. Position limits i The position limits for various classes of participants for the currency options shall be subject to the guidelines issued by the SEBI.

Surveillance and disclosures The surveillance and disclosures of transactions, in the exchange traded currency options market, shall be carried out in accordance with the guidelines issued by the SEBI. Terms and conditions for residents participating in the Exchange Traded Currency Derivatives ETCD a.

The procedure for the same shall be as under: It is clarified that the term Board, wherever used refers to Board of Directors or the equivalent forum in case of partnership or proprietary firms.

The facility is divided into following categories: I Delegated Route a. Companies in India engaged in import and export of commodities Facilitators: AD Category I banks. Hedging of anticipated imports of crude oil Participants Users: Domestic companies engaged in refining crude oil.

Hedging of price risk on domestic purchase and sales i Select Metals Participants Users: AD Category I banks Purpose: To hedge the price risk on aluminium, copper, lead, nickel and zinc based on their underlying economic exposures Products: Actual domestic users of ATF.

Domestic crude oil refining companies. Hedging of price risk on Inventory Participants Users: Domestic oil marketing and refining companies. To hedge commodity price risk on Inventory. II Approval Route Participants Users: To hedge systemic international price risk in commodities.

III Entities in Special Economic Zones SEZ Participants Users: Entities in Special Economic Zones SEZ Facilitators: Freight hedging Domestic oil refining companies and shipping companies exposed to freight risk, are permitted to hedge their freight risk by the AD Category I banks authorized by the Reserve Bank.

I Delegated Route Participant: Domestic oil-refining companies and shipping companies. To hedge freight risk. Companies other than domestic oil-refining companies and shipping companies who are exposed to freight risk Facilitators: To hedge freight risk Products: Operational Guidelines The maximum tenor permissible will be one year forward.

SECTION II Facilities for Persons Resident outside India Participants Market-makers — AD Category I banks. The purpose, products and operational guidelines of each of the users is detailed below: Products Forward foreign exchange contracts with rupee as one of the currencies and foreign currency-INR options. The amount of the swap should not exceed the amount proposed to be invested in the IPO. The tenor of the swap should not exceed 30 days.

Facilities for Non-resident Indians NRIs Purpose To hedge the exchange rate risk on the market value of investment made under the portfolio scheme in accordance with provisions of FERA, or under notifications issued there under or in accordance with provisions of FEMA, To hedge the exchange rate risk on the amounts held in FCNR B deposits.

To hedge the exchange rate risk on balances held in NRE account. Products Forward foreign exchange contracts with rupee as one of the currencies, and foreign currency-INR options.

Facilities for Hedging Foreign Direct Investment in India Purpose To hedge exchange rate risk on the market value of investments made in India since January 1, , subject to verification of the exposure in India To hedge exchange rate risk on dividend receivable on the investments in Indian companies To hedge exchange rate risk on proposed investment in India Products Forward foreign exchange contracts with rupee as one of the currencies and foreign currency-INR options.

Operational Guidelines, Terms and Conditions a In respect of contracts to hedge exchange rate risk on the market value of investments made in India, contracts once cancelled are not eligible to be rebooked.

These contracts, if cancelled, shall not be eligible to be rebooked for the same inflows. Exchange gains, if any, on cancellation shall not be passed on to the overseas investor.

Facilities for Hedging Trade Exposures, invoiced in Indian Rupees in India Purpose To hedge the currency risk arising out of genuine trade transactions involving exports from and imports to India, invoiced in Indian Rupees, with AD Category I banks in India.

Operational Guidelines, Terms and Conditions The AD Category I banks can opt for either Model I or Model II as given below: The following undertakings also need to be taken from the customer: Facilities for Hedging of ECBs, designated in Indian Rupees, in India Purpose To hedge the currency risk arising out of ECBs designated in INR with AD Category- I banks in India. Products Forward foreign exchange contracts with rupee as one of the currencies, foreign currency-INR options and foreign currency-INR swaps.

Operational Guidelines, Terms and Conditions a QFIs are allowed to hedge the currency risk on account of their permissible investments with the AD Category-I bank with whom they are maintaining the Rupee Account opened for the purpose of investment. SECTION III Facilities for Authorised Dealers Category-I 1. Operational Guidelines, Terms and Conditions The use of these instruments is subject to the following conditions: An appropriate policy in this regard is approved by the Top Management.

The value and maturity of the hedge should not exceed those of the underlying. Hedging of Gold Prices Users — Banks authorised by the Reserve Bank to operate the Gold Deposit Scheme Banks, which are allowed to enter into forward gold contracts in India in terms of the guidelines issued by the Department of Banking Operations and Development including the positions arising out of inter-bank gold deals Purpose — To hedge price risk of gold Products - Exchange-traded and over-the-counter hedging products available overseas.

Operational Guidelines, Terms and Conditions While using products involving options, it may be ensured that there is no net receipt of premium, either direct or implied. Hedging of Capital Users — Foreign banks operating in India Product — Forward foreign exchange contracts Operational Guidelines, Terms and Conditions a Tier I capital - The capital funds should be available in India to meet local regulatory and CRAR requirements and, hence, these should not be parked in nostro accounts.

Participation in the currency futures market in India Please refer to Part-A Section I, paragraph 4. In continuation of the same: Net profit for last 3 years. Participation in the exchange traded currency options market in India Please refer to Part-A Section I, paragraph 5. The option position of the banks, on their own account, in the exchange traded currency options shall form part of their NOP and AG limits PART B ACCOUNTS OF NON-RESIDENT BANKS 1.

General i Credit to the account of a non-resident bank is a permitted method of payment to non-residents and is, therefore, subject to the regulations applicable to transfers in foreign currency. Transfers from other Accounts Transfer of funds between the accounts of the same bank or different banks is freely permitted. Conversion of Rupees into Foreign Currencies Balances held in Rupee accounts of non-resident banks may be freely converted into foreign currency.

Refund of Rupee Remittances Requests for cancellation or refund of inward remittances may be complied with without reference to Reserve Bank after satisfying themselves that the refunds are not being made in cover of transactions of compensatory nature. Rupee Accounts of Exchange Houses Opening of Rupee accounts in the names of Exchange Houses for facilitating private remittances into India requires approval of the Reserve Bank.

PART C INTER-BANK FOREIGN EXCHANGE DEALINGS 1. General The Board of Directors of AD Category I banks should frame an appropriate policy and fix suitable limits for various Treasury functions. Inter-bank Transactions Subject to compliance with the provisions of paragraphs 1 and 2, AD Category I banks may freely undertake foreign exchange transactions as under: Funding of accounts of Non-resident banks - please refer to paragraph 3 of Part B. Any other overseas borrowing with the specific approval of the Reserve Bank.

Annex I [See Part C, Paragraph 2] A. Guidelines for Foreign Exchange Exposure Limits of Authorised Dealers Category — I The Foreign Exchange Exposure Limits of Authorised Dealers would be dual in nature. Net Overnight Open Position Limit NOOPL for calculation of capital charge on forex risk NOOPL may be fixed by the boards of the respective banks and communicated to the Reserve Bank immediately.

The Net Open position may be calculated as per the method given below: Calculation of the Net Open Position in a Single Currency The open position must first be measured separately for each foreign currency. These transactions, which are recorded as off-balance sheet items in the bank's books, would include: Calculation of the Overall Net Open Position This involves measurement of risks inherent in a bank's mix of long and short position in different currencies.

Banks may, therefore, calculate the overall net open position as follows: Calculate the net open position in each currency paragraph 1 above. Calculate the net open position in gold. Arrive at the sum of all the net short positions. Arrive at the sum of all the net long positions. Offshore exposures For banks with overseas presence, the offshore exposures should be calculated on a standalone basis as per the above method and should not be netted with onshore exposures. An illustrative example is as follows: If a bank has, let us say three foreign branches and the three branches have open position as below- Branch A: Capital 3 Requirement As prescribed by the Reserve Bank from time to time 5.

Limit for positions involving Rupee as one of the currencies NOP-INR for exchange rate management NOP-INR may be prescribed to Authorised Dealers at the discretion of the Reserve Bank of India depending on the market conditions.

Aggregate Gap Limits AGL i. However, Authorised Dealers which have instituted superior measures such as tenor wise PV01 limits and VaR to aggregate foreign exchange gap risks are allowed to fix their own PV01 and VaR limits based on their capital, risk bearing capacity etc.

The procedure and calculation of the limit should be clearly documented as an internal policy and strictly adhered to. Annex II [see Part D, paragraph i ] Reporting of Forex Turnover Data - FTD and GPB The guidelines and formats for preparation of the FTD and GPB reports are given below. IN USD MILLION Net Open Exchange Position Rs. IN INR CRORE AGL maintained In USD mio: VaR maintained In INR: Currency Net balance in Nostro Account Net balance in Vostro Account.

Annex IV [see Part D , paragraph iii ] Cross- currency derivative transactions - statement for the half-year ended…. To, Name and address of the Bank Dear Sir, Sub: Name of the constituent: Option Transaction Report Sr. Change in Portfolio Delta Report Change in USD-INR delta for a 0. Annex IX [See Part C, paragraph 5 a ] Overseas foreign currency borrowings —Report as on ………..

Annex XI [See Part A, Section I, paragraph 5 A i ] A. While extending the above hedging facilities, AD Category I banks should ensure that the domestic crude oil refining companies hedging their exposures should comply with the following: Any other relevant information.

A one-time approval will be given by Reserve Bank along with the guidelines for undertaking this activity. Signature of the Authorised Official of the AD bank Date: Name of the AD Category I Bank — No. DIR Series Circular No 26 November 1, DIR Series Circular No 47 June 23, DIR Series Circular No 03 July 23, DIR Series Circular No 25 March 6, Events Public Speaking Engagements RBI Clarifications Right to Information Act Related Links.

RBI's Core Purpose, Values and Vision Citizens' Charter Timelines for Regulatory Approvals Complaints Contact Us. Follow RBI RSS Twitter Videos. Master Circular on Risk Management and Inter-Bank Dealings. Yours faithfully, B P Kanungo Principal Chief General Manager INDEX PART — A. Facilities for Persons Resident outside India.

Facilities for Authorised Dealers Category-I. INTER-BANK FOREIGN EXCHANGE DEALINGS. Notional principal amount in USD.

Any other product as permitted by Reserve Bank from time to time. Amount in US Dollar Eligible limit under past performance. Aggregate amount of contracts booked with all the ADs from April till date. Amount utilised by delivery of documents as on date. Available limits under past performance as on date. Percentage of overdue bills to turnover. Existing limit for booking of forward cover based on past performance.

Unimpaired Tier-I capital as at the close of previous quarter. Any other category please specify here in this cell. Eligibility for Forward cover.

Total forward cover outstanding. Total amount of derivative transactions undertaken INR crores. Name of the overseas bank in case of Model I.