Reserve Bank of India — Notifications·· 10 days agoSelectedAI score87
RBI requires authorized dealers to maintain a 20% foreign exchange risk reserve for certain INR foreign exchange derivatives
Risk Management and Inter-Bank Dealings - Foreign Exchange Risk Reserve
AI brief
AI-assisted source summary · not independently verified. Content standards
RBI requires authorized dealers to maintain a Foreign Exchange Risk Reserve for foreign exchange derivatives involving INR, with a notional amount exceeding USD two million equivalent and used to hedge current account transactions.
Why it matters
The rules clarify the scope of applicable derivatives, the 20% cash reserve ratio, and daily reporting requirements, making it easier for authorized dealers to assess the funding requirements of foreign exchange hedging business.
Source:Reserve Bank of India — Notifications · rbi.org.in