The Reserve Bank of India has updated foreign exchange exposure rules for banks. These changes simplify calculations by merging onshore and offshore positions and allow inclusion of overseas earnings. Crucially, banks can now exclude certain long-term foreign currency investments, potentially boosting trading capacity. Forex risk capital will be based on actual net open positions, with gold treated separately.
The Reserve Bank of India has eased foreign exchange exposure rules for banks, simplifying calculations by merging onshore and offshore positions and allowing the inclusion of overseas earnings. Banks can now exclude specific long-term foreign currency investments, which could…
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