Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

June 2012

A.P. (DIR Series) Circular No. 122, dated 9-5-2012 — Risk Management and Inter-Bank Dealings.

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
fiogf49gjkf0d
Presently, banks are permitted to deploy foreign currency funds for granting loans to their resident customers for meeting their foreign exchange requirements or for their rupee working capital/capital expenditure needs, subject to the prudential/interestrate norms, credit discipline and credit monitoring guidelines in force.

This Circular has modified the said policy and banks can now, subject to the prudential/interestrate norms, credit discipline and credit monitoring guidelines in force, use funds in FCNR(B) accounts with them for making loans to resident customers for meeting:

(i) their foreign exchange requirements or

(ii) for the Rupee working capital/capital expenditure needs of exporters/corporates who have a natural hedge or a risk management policy for managing the exchange risk.

Download PDF

You May Also Like

(2011) 24 STR 611 (Tri.-Del.) — Intertoll India Consultants (P) Ltd. v. Commissioner of Central Excise, Noida.

A.P. (DIR Series) Circular No. 123, dated 10-5-2012 — Risk Management and Inter-Bank Dealings.