RBI Eases Forex Hedging Norms for Exporters, Importers
PrintListen to this Article
The Reserve Bank of India on Wednesday relaxed the norms for forex hedging for exporters and importers by allowing them to book forward foreign exchange contracts in excess of 50 per cent of the eligible limit.
"It has now been decided that, henceforth, banks may permit aggregate outstanding contracts in excess of 50 per cent of the eligible limit on being satisfied about the genuine requirements of their customers after examination of a document...signed by the CFO and CS," the RBI said in a statement.
However, approval is subject to some conditions including a declaration that all guidelines have been adhered to while utilising the facility.
Besides, a certificate of import or export turnover of the customer during the past three years has to be attached, it said.
It further said that in the absence of a company secretary (CS), the CEO or the COO shall co-sign the undertaking along with the CFO.
The RBI had eased norms related with the hedging last year by allowing them to book contract up to 50 per cent of the eligible limit. (PTI - NDVT)
Category : RBI | Comments : 0 | Hits : 528
The Supreme Court on Friday set aside the rejection of an IRS officer’s candidature for appointment as a member of the Income Tax Appellate Tribunal (ITAT), ruling that the involvement of the th...
The Reserve Bank of India (RBI) on Friday unveiled a set of liquidity-boosting measures aimed at infusing more than $23 billion (around ₹2 lakh crore) into the banking system, after review...
RBI has issued draft rules to tighten dividend payouts by banks by linking distributions to capital adequacy, asset and profit quality, setting a uniform prudential framework effective from FY27. In t...
Comments